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ARTICLE · 15 APRIL 2024

Faulty Workmanship Coverage Update

Plunkett & Cooney
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The Washington Supreme Court affirmed the Washington Court of Appeals ruling that coverage for repairs to the Gardens Condominium's roof components was available under the resulting loss exception to the insurance policy's faulty workmanship exclusion.

United StatesInsurance
Amy L. Diviney
Amy L. Diviney

Gardens Condominium v. Farmers Ins. Exch.
No. 101892-4, --- P.3d ---, 2024 WL 1100749 (Wash. Mar. 14, 2024)

The Washington Supreme Court affirmed the Washington Court of Appeals ruling that coverage for repairs to the Gardens Condominium's (Gardens) roof components was available under the resulting loss exception to the insurance policy's faulty workmanship exclusion.

Gardens sought coverage from Farmers Insurance Exchange (Farmers) under an all-risk insurance policy for the cost of repairing damage to roof sheathing and framing caused by water vapor, condensation and humidity becoming trapped between the roof surface and ceiling because of defectively installed sleepers on top of the joists. Farmers denied Gardens' claim under the faulty workmanship exclusion, concluding that the faulty construction caused the loss due to a lack of ventilation in the roof assembly. Gardens then filed a declaratory judgment action, seeking a determination that coverage was

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