CT INSURANCE LAW -- Homeowners policy held not to cover alleged misrepresentation in property disclosure statement

2015-11-15 | Joseph M. Busher
jmbusher@jacksonokeefe.com

Category: Insurance

Joseph M. Busher

In a declaratory judgment action, the homeowners insurer sought a declaration that it had no duty to defend its insured.  The insured had been named as a defendant in a lawsuit alleging that the insured represented on a property disclosure report that he lacked knowledge about basement water seepage, water damage, rot or driveway problems.  After the property was sold, the driveway was allegedly washed away by floods and it was alleged that water damage, mold and rotten beams were discovered.  The Superior Court finds that the alleged misrepresentations do not qualify as property damage under the terms of the insurance policy, and grants the insurer’s motion for summary judgment.  On appeal, the Appellate Court affirms.  “The damages claimed by the [buyers] as a result of the defendant’s alleged misrepresentations constituted economic or pecuniary losses, and not property damage within the ambit of the coverage of the policy.”  New London County Mutual Ins. Co. v. Sielski, AC 36792 (September 15, 2015)

Jackson O’Keefe, LLP, has several attorneys who routinely focus on insurance law issues.  If you have an insurance question or litigation matter involving a GL, E&O, D&O, homeowners,  or auto policy, contact us for assistance at 860-278-4040.

Jackson O’Keefe has been practicing in the insurance field since the 1950s. The firm was co-founded by a former Insurance Commissioner for the State of Connecticut.  The firm is pleased to have received the highest Martindale-Hubbell rating of “AV.”  It is recognized in A.M. Best’s Recommended Insurance Attorneys.  It is also recognized in the Bar Register of Preeminent Attorneys.  Additionally, several of our partners have been peer-reviewed by Thomson Reuters as “Super Lawyers” qualifying as among the top five percent of practicing attorneys in Connecticut.  We are active participants in the Claims and Litigation Management (CLM) Alliance.

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