A case decided late last year has held that the cost to take apart and actually demolish work so as to effect a repair (better known as rip and tear) should be covered by applicable insurance. This is a departure from the long held belief that while the cost to repair a contractor’s faulty and defective work may be covered depending on policy provisions, the cost to get to that fault or defect, specifically the cost to take apart perfectly fine work to uncover the contractor’s defective work, would not be. Accessing defective work is not uncommon in any construction scenario. For example, a contractor may have to chip away at intact and sound stucco to get to cracks in the masonry causing a water leak.
Contractors, who so often struggle to obtain coverage for defect issues, now have an avenue to seek payment when uncovering defective work.
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