Owners of Leaky Iowa Apartments Win Suit Against Insurer

An insurance company has been told to pay $12.4 million to the owners of a West Des Moines, Iowa, apartment complex that was plagued with water leaks and mold.

Construction of the Westlake apartments began in 2002. Westlake Investments LLC of West Des Moines took control of the property in November 2003 and by the following spring noticed water leaking into more than 100 units.

The Des Moines Register says Westlake Investments in 2008 sued several entities involved in the apartments’ construction, including CCC/MLP and Pioneer Construction.

National Surety had provided excess liability insurance for CCC/MLP and Pioneer Construction during construction of the apartments. National Surety denied that it was responsible for the claim.

A Polk County jury ruled against National Surety.