Texas High Court to Rule on Construction Defects

Articles & Publications

November 1, 2006

In the wake of the recent Texas Supreme Court decision in Fiess v. State Farm Lloyds, wherein the Court held that mold was not covered under a former version of the Texas standard homeowner's insurance policy, Texas commercial policyholders and insurance carriers are now awaiting the ultimate opinion of the same high court on three certified questions related to coverage for property damage resulting from construction defects under commercial general liability, or CGL, policies. The anticipated opinion in this case may have significant implications with regard to how Texas contractors manage the risk of construction defects on their projects which may further impact coverage and/or remediation of any collateral mold damage.

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