A bombing coverage dispute has ended with a settlement between Aspen Specialty Insurance Co. and a Nashville condo association. The disagreement stemmed from property damage caused by the 2020 Christmas Day bombing. Both parties agreed to dismiss the lawsuit, with each covering their own legal fees.
Bombing Coverage Dispute Focused on Policy Terms
The bombing coverage dispute began after a 2020 explosion damaged around 60 buildings in downtown Nashville, including the Quarters Condominium. Aspen had paid $4.3 million on the condo’s insurance policy. However, the association claimed nearly $11 million was owed based on replacement cost coverage.
Aspen argued that a policy exclusion applied to historic properties. The insurer claimed the condo’s location in a designated historic district limited coverage. The association disagreed, saying the building was never declared a historic structure.
In June 2024, a federal judge ruled in favor of the condo association. The judge said the policy’s exclusion only applied if the building was officially designated as historic. Being in a historic district was not enough.
The court also rejected Aspen’s argument that the property’s age made it historic. The judge found the language of the exclusion to be clear. She explained that ambiguity in insurance contracts must favor the policyholder under the law.
Lawsuit Ends With Undisclosed Settlement
The lawsuit was dismissed after both sides reached a private agreement. The settlement terms were not shared in court filings. Mediation had been scheduled for this spring, with a report due around the same time.
Each side agreed to cover its own costs and attorney fees. No further action on the bombing coverage dispute is expected.
