Faulty Workmanship Exclusion Prevents Coverage for Property Loss

October 10, 2011

Our client's landlord contracted roof repairs to be done on the building. The roofer had not informed the tenant—our client—that repairs were being made. In fact the tenant was not even open at the time of repairs. The roofer cut out sections of the metal roof, causing gravel, insulation, and dirt to fall on the tenant's carpets—the insured is a carpet and area rug wholesaler. The insurance company denied the claim based on the faulty workmanship clause. We feel the company is wrong in denying coverage since the tenant had no knowledge that work was commencing. Nor did he have any part in arranging or paying for the work. The lease specifies that the roof and its repair are the landlord's respnsibility. We do not feel the company can deny this claim although they certainly have subrogation rights.