Homeowner and contractor lose insurance claim arising out of construction defect

In Michigan Ins. Co. v. Channel Road Constr. Co., the Court of Appeals sustained the summary disposition of a water damage claim brought against multiple insurers by a homeowner and the contractor who built the home.  The involved insurers argued that there was no "occurrence" under the language of their policies, because the water damage resulted from the contractor's failure to install metal flashing above windows and the builder's installation of window sills at an inappropriate angle that did not drain the sills outward.  The Court held that since the damage was caused by defective workmanship and was confined to the contractor's work product, the insurance policies involved did not cover the damage that resulted.