Cincinnati informed the insureds that the gap was a construction defect, and coverage was denied for the repair of the gap based upon the policy’s Construction Defect Exclusion.
Reversing the trial court’s grant of summary judgment to the insurer, the Wisconsin Supreme Court determined that genuine issues of material fact existed on whether ensuing losses as defined in the policy were covered. Cincinnati Ins. Co. v. Ropicky, 2026 Wisc. LEXIS 302 (Wis. July 7, 2026).
The insured suffered damage during a storm on May 11, 2018, when rainwater poured into the home. The insureds gave notice to their insurer, Cincinnati. Upon inspection, Cincinnati determined that water intrusion resulted from multiple construction defects in the home. In the front of the home, water entered through a gap in the stone veneer. The inspector also concluded that the damage from rainwater was not just from the May 11, 2018, storm, but damage had occurred from prior storm events.
Mr. Eyerly may be contacted at te@hawaiilawyer.com