Chadwick

Franklin S. Chadwick and Charlene D. Mandel (homeowners) were the insureds under a broad peril homeowners insurance policy issued by Fire Insurance Exchange (FIE). They noticed cracking in their walls, the cause of which was found to be substandard design and construction of the house’s wall and floor framing. FIE denied coverage on the grounds the policy excluded loss from “cracking,” “latent defect” and “inherent vice.” Homeowners sued for breach of contract, breach of the covenant of good faith and fair dealing, and additional tort causes of action. The superior court granted summary judgment for FIE, finding as a matter of law the loss was predominantly caused by latent defect or inherent vice. We reverse.

Facts

Summary judgment is proper if there is no triable issue of material fact and the moving party is entitled to judgment as a matter of law. (Code Civ. Proc., § 437c, subd. (c).) In reviewing that determination, we construe the moving party’s papers strictly and those of the opposing party liberally. (Howell v. State Farm Fire & Casualty Co. (1990) 218 Cal.App.3d 1446, 1448 [ 267 Cal.Rptr. 708 ].) Viewed in that light, the record discloses the following…