44 - Building Codes and Catastrophes: What Every Homeowner Should Know
Behind the Scenes of Construction Defect Claims: Lessons from Markel Insurance’s Phyllis Modlin
In this episode of The Claim Hunter, host Chris Tidball welcomes Phyllis Modlin, Director and Senior Counsel at Markel Insurance, for an in-depth conversation on the complexities of construction claims. With decades of experience handling excess liability and catastrophic loss claims, Phyllis brings clarity to one of the most challenging areas in insurance: construction defect litigation. If you’re a claims executive, litigation manager, or carrier decision-maker navigating evolving risk exposures, this conversation delivers insight you can apply today.
What Carriers Need to Know About Construction Defects, Policy Exclusions, and Claims Trends
Construction defect claims are on the rise—and with them, the severity and cost of litigation. Phyllis explains how common property damage issues like leaky windows, stucco cracks, and faulty foundations are not just isolated events but signals of larger workmanship problems that surface years after project completion. With statutes of limitation often stretching 8 to 10 years, claims activity typically spikes in years four to five, when latent defects begin to cause visible damage.
Chris and Phyllis also discuss how the insurance industry cycles through responses to risk. Drawing from examples like Chinese drywall and mold exclusions, Phyllis outlines how underwriters react in real time, carving out coverage after loss trends emerge. These insights are essential for carriers looking to stay proactive rather than reactive. The episode also touches on how Markel’s commercial specialization allows it to manage large-scale construction risks with more agility and depth than traditional personal lines carriers.
Whether you're building exclusions, analyzing risk portfolios, or trying to reduce litigation exposure, this episode is a must-listen for today’s insurance leaders.
About Phyllis Modlin
Phyllis Modlin is Director and Senior Counsel at Markel Insurance. She specializes in high-value construction defect claims and complex litigation, with a deep understanding of both legal and underwriting implications.
About Markel Insurance
Markel Insurance offers customized commercial insurance solutions with a strong emphasis on construction liability, specialty programs, and excess coverage. Their ability to manage nuanced, large-exposure risks makes them a go-to for industry professionals seeking expert guidance.
Links Mentioned in This Episode
Key Episode Highlights
Why construction defect claims often spike 4–5 years after project completion
The top three red-flag defects that spark litigation: stucco cracks, leaky windows, and faulty foundations
How insurers respond to loss trends with real-time exclusions (e.g., Chinese drywall)
What underwriters must consider when drafting exclusions for emerging risks
The long-tail nature of construction litigation and what it means for carriers and reinsurers
Conclusion
Phyllis Modlin offers a seasoned perspective on a topic that continues to challenge the insurance industry. Her clarity, candor, and deep technical knowledge provide valuable direction for insurers looking to manage construction-related exposures more effectively.
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