Insurance Coverage For Collapse: How Has It Changed and Why?

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...instances where the Form 1 may still be used), so forms must be carefully reviewed.

Homeowners (HO 00 03 10 00)

8. Collapse

Note that the new language indicates that coverage will not apply if collapse is caused by decay or insect/vermin infestation that are known to the insured prior to the collapse.

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Language was also added that specifically excluded loss to an awning, fence, patio, deck, pavement, swimming pool, underground pipe, flue, drain, cesspool, septic tank, foundation, retaining wall, bulkhead, pier, wharf or dock unless the loss is a direct result of the collapse of a building or any part of a building. New language also was added that excluded “settling, cracking, shrinkage, bulging, or expansion,” in the absence of an actual collapse.

Another insurance organization that drafts policy language for its member companies, as does...

“The traditional or conservative view held that collapse involved either a falling down or caving in, into a flattened form of rubble, thus an actual collapse. The liberal view held that collapse involved a substantial impairment of structural integrity, without an actual collapse of the building or part thereof being necessary.”

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