PROPERTY INSURANCE - Contractor's or builder's policies

Law360 Canada ( April 1, 2019, 1:00 PM EDT) -- Appeal by the insurer from a ruling on a question of law finding that an insurance policy covered damage to pre-existing property at a construction site. The four respondents were the general contractor and subcontractors involved in renovations at a hospital complex. As the project neared completion, water escaped from a sprinkler system worked on by a plumbing subcontractor, causing flooding. The water damaged the newly constructed property and related building materials. The parties agreed that the policy covered this damage. In addition, the flooding caused damage to other areas of the hospital complex unrelated to the renovation project. At issue was whether the policy covered damage to this pre-existing property. The application judge held that the term "property insured" in the Builders' Risk policy included the pre-existing property. The insurer appealed....
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