Court holds that an "occurrence" invoked the insurer's policy where personal property was damaged
Auto Owners attempted to avoid paying for damages that resulted after its insured's allegedly defective work caused property damage to a homeowner. The insurer argued that this was purely a case of poor performance by North Arrow Log Homes and filed a declaratory judgment action to deny liability; the insurer claimed that no "occurrence" as defined in the policy had created any duty on its part to pay damages.
The Court rejected this analysis, noting that since the homeowner suffered damage to personal property that was not the insured's work, under the language of the policy the coverage was invoked. Auto Owners could not avoid the obligation it was paid to cover.