Rose's house was infested with insects. Because of hidden damage caused by those insects, the floors in the house dropped approximately 4 inches. A collapse claim was presented to New York Central Mutual Fire Insurance Company (New York). While both parties agreed that the insect damage had caused the floor to drop, New York denied the coverage. It argued that the damage was due to settling and not collapse.

Click here to see how the courts reacted to each party's argument.

Collapse coverage is excluded and then added back into both personal and commercial property coverage forms. The loss must be sudden and accidental and the result of a listed cause of loss.

Click here to review the PF&M analysis of the Collapse coverage in a commercial property coverage form.

Click here to review the PF&M analysis of the Collapse coverage in a personal property coverage form.

Do you believe Rose's neighbors heard about her loss? I do. The news about losses and particularly about denied losses can travel very quickly. Many of Rose's neighbors may have even read their policies for the first time. They may also want to know more about their coverage. If you are prepared with an answer, there is no better time to send out a targeted prospecting letter.

Click here to review an appropriate business building letter you could customize based on the type of loss.

Commercial and personal property insurance pay for damage only when caused by a covered peril/cause of loss. The terms are commonplace in the industry but may not be as well understood by the general public.

Click here for two different emarketing articles you could attach to an email or post on your website that provide brief descriptions of some of the more common perils/causes of loss.