A Closer Look: Progressive Damage, Progressive Problems
The Florentine Condominiums, a prominent property housing 108 residential and eight commercial units, began grappling with hidden structural water damage that was gradually uncovered by J2 Building Consultants. The damage, according to the complaint, occurred progressively and incrementally, overlapping across various policy periods from 1996 to 2001.
Such incremental damage cases can prove notoriously complex, often becoming battlegrounds between insurers and policyholders, particularly when multiple policy periods are involved. Here, The Florentine Owners Association claims each period covered by AFM policies witnessed “new loss or damage,” necessitating comprehensive coverage by the insurer.
Fed up with delays and inaction, the condo association is now pursuing a jury trial, seeking not only reimbursement of the substantial damage costs but also attorney fees and penalties under Washington State’s consumer protection laws—penalties which could amount to $25,000 per violation.
“It’s more than just the money—it’s about accountability,” said Daniel Stein of Stein Sudweeks & Stein PLLC, one of the attorneys representing the association. “Insurers have a duty of good faith, and when they breach that duty, policyholders suffer. Our clients deserve prompt resolution and full compensation.”
Legal analysts like myself frequently witness this tug-of-war dynamic between insurers aiming to minimize payouts and policyholders determined to hold insurers to their contractual obligations. Such cases often become bellwether litigation, influencing how insurers approach similar claims in the future.
