Insurance Coverage for Faulty Workmanship Puzzles Appeals Court

A panel of Massachusetts Appeals Court judges were dubious Monday that a contractor’s defective workmanship on a house triggers an insurer’s coverage obligations for property damage, but signaled they may give homeowners an opportunity to rescue their case.

Two homeowners sued their building contractor, R.C. Havens & Sons, and its insurer, Main Street American Assurance Co., alleging faulty construction on their home led to costly defects. They want the court to rule as a matter of first impression that such faulty workmanship, leading to damage to another part of a contractor’s work, constitutes property damage and implicates liability insurance coverage. ...