Construction Defect Claim Not Covered

January 5, 2018
Tred R. Eyerly – Insurance Law Hawaii

The insured general contractor was not covered for alleged faulty workmanship in constructing a home. Allstate Ins. Co. v. Luu, 2017 U.S. Dist. LEXIS 190983 (N.D. Ga. Nov. 17, 2017).

Luu, the homeowner, contracted with Diamond for the purchase of a lot and building of a new home. After the closing and construction, Luu noticed a number of alleged code violations on the property and began having problems with the house. Diamond denied liability, claiming Luu purchased the home "as is." Luu filed suit.

Mr. Eyerly may be contacted at


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