A homebuilder's insurance company tried to deny coverage for a homebuyer's defective construction lawsuit, claiming the damage didn't qualify under the policy. The Texas Supreme Court ruled that unintended construction defects can count as an 'accident' and damage to a home can count as 'property damage' under a commercial general liability (CGL) policy. This means insurers must defend homebuilders against these claims, even when the defects are in the builder's own work.
Your CGL insurance should cover defective construction claims from homebuyers, even if the defects are in work you performed yourself