Pulte is taking 19 insurers to court in New Mexico, saying not one stepped up to defend it against homeowner construction defect claims.
The lawsuit, filed on May 1, 2026 in the US District Court for the District of New Mexico, names a long list of commercial carriers: Cincinnati Insurance Company, ACE American, Clear Blue Specialty, Endurance American, Everest National, Everest Premier, Gemini, GuideOne National, Hudson, James River, Knight Specialty, Lexington, National Fire Insurance Company of Hartford, Obsidian Specialty, Old Republic, Peleus, Selective, Sentinel, and United Specialty Insurance Company.
The story behind the filing starts at the Estates at Mirehaven, a residential community Pulte built in Albuquerque. According to the filing, Pulte didn't perform any of the work itself - 22 subcontractors handled everything from stucco and roofing to drywall, cabinetry, plumbing, and countertops. Each one, Pulte says, was contractually required to carry commercial general liability insurance with limits of USD$1 million per occurrence and USD$2 million in aggregate, and to add Pulte as an additional insured.
That additional insured status is the heart of the dispute. Pulte alleges the policies were endorsed to cover it "with respect to liability arising out of, or related to, or caused in whole or in part by the respective Named Insured Subcontractors' work."
The trouble began in early 2025. According to the filing, homeowners started serving Notices of Defects in February under New Mexico's construction defect statute, followed by arbitration demands and, on May 28, 2025, a lawsuit in Bernalillo County district court - Heather Sandoval, Roy & Debra Christman, et al. v. Pulte Home Company, LLC, et al. - alleging property damage from defective construction. Pulte says it has already spent more than USD$75,000 defending itself.
So Pulte did what builders typically do: it tendered the defense to every insurer on the list. The response, the filing claims, was silence or rejection across the board. "Each and every Defendant rejected and/or otherwise failed to respond," the complaint says.
Pulte is also pressing an alternative theory - that its subcontracts qualify as "insured contracts" under the policies, letting it step into the shoes of its subcontractors and pursue coverage that way, citing Krieger v. Wilson Corp., 2006-NMCA-034.
Beyond the contract claims, Pulte accuses the carriers of violating the New Mexico Unfair Insurance Practices Act, saying they failed to set reasonable claim-handling standards, didn't pursue good-faith settlement where liability was reasonably clear, misrepresented policy terms, and withheld material facts. A separate bad faith count alleges the carriers' reasons for delay or denial were "frivolous and unfounded," and seeks punitive damages.
For carriers writing construction risks and additional insured endorsements, it's the kind of case worth watching - a major builder, a single project, and nearly 20 carriers all caught up in the same coverage fight. Pulte is asking for a declaration of coverage, compensatory and punitive damages, attorneys' fees, and 18% statutory interest.
The allegations have not been tested in court. The insurers have not yet filed responses, and no court has ruled on the claims.
