Court Backs Insurer’s Right Of Subrogation Against Contractor For $3M Water Damage Claim

A plumbing contractor facing a subrogation lawsuit from a homeowner’s insurer is not eligible for coverage under the homeowner’s purchased Residential Builders—All Risks [RBAR] insurance policy, an Ontario court has ruled. Joseph and Lidia Maio had their dream home built on a property in Vaughan, Ontario. It took two years to build and was finally completed in September 2009. Nine days after the Maios moved into their new place on Nov. 1, 2009, a faucet on the main floor became detached, resulting in a flood that caused over $3 million in damage.