Another CRUG Insurance Win

In Estate of Truesdell v. State Farm, Ohio’s Eleventh Appellate District found that home construction defects and resulting moisture damage were properly excluded under State Farm homeowner’s policy’s exclusions for construction defects, wear and tear, and moisture damage that develops over time.

The case arose from alleged construction defects in a home built in 2009. When the homeowner discovered defects in 2020, she filed a claim with State Farm, which was denied based on policy exclusions. The Estate argued that while the construction defects themselves might be excluded, the resulting damage should be covered.

The Court disagreed, finding that because the resulting damages were due to moisture and rot developing over time, they fell squarely within the policy’s exclusions. The Court also rejected claims that the insurance agency’s alleged verbal representations about coverage could override the written policy terms.

This case reinforces the importance of carefully reviewing policy exclusions, particularly regarding construction defects and resulting damage. Insurance professionals should ensure clients understand that verbal representations cannot modify clear policy exclusions.

Greg Collins, Kurt Anderson, Dave Lester and Luke Baker (L-R) all contributed to the favorable ruling.