What Insurance Covers Construction Defects?
Insurance rarely pays to fix the defective work itself; builders risk or general liability may cover other property the defect damages.
Usually no policy pays to redo the defective work itself. What insurance can cover is the damage the defect causes to other property. During the build, that's builders risk; after completion, it's the completed-operations part of general liability.
The builders risk form excludes faulty workmanship, materials and design, but pays for a covered loss that results from it only if the wording includes that exception. Design errors by an architect or engineer fall under professional liability instead.
After a loss, separate what was defective from what it damaged. Then check each policy's coverage, exclusions and limits against each part of the claim.
