Florida “property damage” and exclusion j.(5)

In Precise Construction, Inc. v. Amerisure Ins. Co., No. 10-10976 (11th Cir. March 14, 2011)(unpublished), Precise was the general contractor for a commercial construction project.  Precise subcontracted with GBL for the foundation.   GBL constructed the foundation in the wrong location, requiring the demolition of the foundation and reconstruction in the correct location.  Precise sought coverage for the costs for the demolition and reconstruction as an additional insured under GBL’s CGL insurance policy issued by Amerisure.   Amerisure denied coverage and Precise filed suit.  The federal district trial court entered summary judgment for Amerisure.  On appeal, the U.S. Court of Appeals for the Eleventh Circuit affirmed, holding that, absent allegations of damage to property other than the foundation, there was no “property damage” and, even assuming property damage, all such property damage would fall within exclusion j.(5) for property damage to

That particular part of real property on which you or any contractors or subcontractors working directly or indirectly on your behalf are performing operations, if the “property damage” arises out of those operations.