John and Annette Bray contracted with CTC Development for construction of a home in the Baycliffs subdivision of Gulf Breeze. When building was nearly 60 percent complete, neighbors sued on grounds the building violated setback requirements in the deed covenants. The estimated cost of moving the home to an allowable location is about $275,000. CTC called on its insurer, State Farm, to defend the case, but State Farm said its policy did not cover the damage at issue here. CTC then sued State Farm. The trial court dismissed the suit, but the First District Court reversed.