Larkspur Isle Condominium Owners' Ass'n v. Farmers Ins. Group

Fanners Insurance Group and its member company Truck Insurance Exchange (collectively Truck) appeal from a judgment on a jury verdict against Truck and in favor of Larkspur Isle Condominium Owners’ Association, Inc. (LICOA) in an action for breach of a property insurance policy. Truck contends it had no liability under the policy as a matter of law, because the loss for which LICOA made its claim manifested itself prior to the beginning of Truck’s policy period. We agree and therefore reverse the judgment.

Facts

Larkspur Isle is a complex of 186 units, originally built as rental apartments in the early 1970’s and converted to condominiums in the early 1980’s. The parties stipulated that water leakage began in 1972 and that asbestos was used in the original construction. LICOA admitted during discovery that it believed damage to asbestos-containing ceiling materials occurred “at various times between 1972 and present.”

In May 1981, an attorney for the residents wrote to the developers: “As a general description of the necessary repair work you are put on notice that there is water damage throughout the apartment complex caused by leaking roofs and walls. This damage is…