Florida “property damage” caused by an “occurrence”

In Amerisure Mut. Ins. Co. v. Auchter Co., No. 3:08-cv-645-J-32HTS (M.D. Fla. Feb. 4, 2010), Amelia Island Company hired Auchter to serve as general contractor for several buildings.  Amelia itself supplied concrete roof tiles for Auchter’s subcontractor to install.  Following completion, concrete roof tiles began to fall from one of the buildings.  Amelia filed a demand for arbitration seeking the costs to repair the roof and loss of use of the building during repair.  The demand did not seek damages for property damage to property other than the roof itself.    Amerisure defended Auchter under a reservation of rights and filed a separate suit seeking judicial declarations of no duty to defend or indemnify.  An arbitration award was entered against Auchter, finding that Auchter’s subcontractor failed to properly secure the roof tiles to the roof, and awarding damages for the cost to replace the entire roof, including non-defective roof tiles, because the original roof tiles were no longer available.  While conceding that the damaged roof tiles constituted tangible property that was physically injured, the court granted summary judgment for the insurer, holding that, within the context of the entire policy, there was no “property damage.”