Jioras

Robert and Charlene Jioras (appellants) purchased a house built by a partnership composed of four individuals. Appellants later sued the partners, claiming the house was defective. The partners sought coverage under certain policies issued by respondent State Farm Fire and Casualty Company (insurer). Insurer accepted the defense, subject to a reservation of rights, and later sued, seeking a declaration that it had no duty to defend or indemnify. Appellants, as assignees of any rights held by the partners under the policies, appeal from the judgment which declared that insurer had no duty to indemnify under the policies.

Appellants do not contest the determination that the relevant policies did not provide coverage for their claims. Instead, they claim insurer must nevertheless provide coverage under estoppel principles because it allegedly failed adequately to reserve its rights under the “umbrella” policy. We conclude there is substantial evidence to support the trial court’s determination that insurer’s reservation of rights was timely, adequate and effective as to all of the partners, and hence we affirm.

I

Factual Background

A. Genesis of the Lawsuit

We review…