Applying the manifestation trigger, the Louisiana Court of Appeal affirmed denial of coverage where the property damage manifested after the policy period expired. Landry v. Williamson, 2015 La. App. Unpub. LEXIS 213 (La. Ct. App. May 1, 2015).
On August 28, 2002, the Burkarts purchased a home from the Williamsons. One month later, water started leaking into the home during periods of rainfall. Suit was filed against the contractor, who was insured by Scottsdale. Scottsdale, who was added as a defendant, filed a motion for summary judgment, asserting that it did not insure the developer at the time the alleged property damage occurred. Scottsdale's policy expired on August 1, 2002. The trial court granted Scottsdale's motion, finding coverage under its policy was not triggered because no property damage occurred during the policy period.
The appellate court affirmed. Louisiana applied the manifestation trigger, meaning coverage was triggered when the damage manifested itself and was discovered during the policy period, not when the causative negligence took place.
Here, the Burkarts first noticed water leaking on September 26, 2002. The Burkarts did not become aware that the leaks, and subsequent damage, were the result of the absence of a secondary water barrier until 2004. All of these events transpired after the Scottsdale policy expired on August 1, 2002. Because the property damage did not manifest until after the expiration of Scottsdale's policy, the Burkarts' alleged property damage did not occur during the policy period.