Ill. Home Developer Wins Appeal For Coverage Of Defect Suit

By Hope Patti (September 12, 2022, 6:51 PM EDT) — An Illinois state appeals court overturned Acuity’s win in a dispute over coverage for construction defects at a townhome development, holding that the underlying allegations potentially fall within the policy’s coverage requirement of property damage caused by an occurrence.

A three-judge panel for the First District remanded the coverage dispute Friday for entry of summary judgment in favor of M/I Homes of Chicago LLC, saying that allegations of damage to “other property” are enough to trigger Acuity’s duty to defend.

Property damage, as defined by the policy, must be damage to property beyond the construction project itself, according to court filings….

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