Timely Notification Key to Insurance Coverage: Condo Denied Coverage for Delayed Damage Report

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The Franssen Condominium Association of Apartment Owners had said in its second amended complaint that much of its damage was to delaminated exterior gypsum sheathing and that deterioration was first discovered in 2018. They sought coverage from its insurers beginning in 2019 but was denied. As a result, they sued their insurers in 2021 for breach of contract, bad faith, negligence and violating the Washington Consumer Protection Act, among other things.

Travelers said in court papers that its final policy with the condo expired in 2002. “The Travelers defendants and the Association did not interact with one another for almost 18 years,” the insurer said, explaining that there was no proof of when the damage in question actually occurred. As a result of the lack of precision in pinpointing a date of damage, Travelers said, it should not have to cover the loss.

The jury found that some of the damage occurred as far back as 1995, around 11 years after the building was erected. However, the condo was slow to discover the water damage, according to court filings, and ultimately the jury said it did not notify Travelers in a timely fashion.