Federal Insurance Company, after conducting its own investigation, denied the claim. The insurer cited exclusions in the policy for “faulty, inadequate, or defective construction or maintenance,” as well as a “neglect” exclusion. Federal argued that the “neglect” exclusion applies when an insured fails to use reasonable means to save and preserve property from further damage at and after the time of loss. Federal also stated that the policy’s “commencing” condition, which relates to when the damage began, was not satisfied. Additionally, Federal asserted that the association knew about the damage before the policy was issued, making the loss ineligible for coverage.
Meadowview sues Federal Insurance over $16m condo water damage
