Articles Tagged with Causal Link

Insurance issues, especially regarding construction and flood related claims, continue to draw heightened interest by the appellate courts.  In St. George Tower v. Ins. Co. of Greater N.Y. (1st Dep’t, April 21, 2016), the First Department was presented with whether a claim was covered by a “blanket endorsement or law coverage endorsement.”

Plaintiff cooperative corporation purchased a commercial general liability policy from Defendant insurer covering the relevant time period.  After a pump ruptured and damaged the ceiling and floors in a certain apartment, Plaintiff submitted a claim to Defendant, and Defendant provided coverage for the damages sustained to certain apartments.  The flooding also caused mold to develop in certain other units.  As a result, Plaintiff’s architect filed an application pursuant to Directive 14 of the New York City Department of Buildings.

During the architect’s inspection it was discovered that certain concrete slabs were in a deteriorated condition and required repairs pursuant to the New York City Administrative Code.  The condition of the slabs was not caused by the flooding.  Rather, it was apparently caused by poor construction practices during the initial installation.