B. EXCLUSIONS
2. Limited Exclusions
There is no coverage for loss or damage caused
by the following exclusions. Note that the lead-in language is not as strong or
inclusive for these exclusions as the language in 1. Broad Exclusions.
Editorial note: ISO does not give titles to these exclusions. To
assist in the analysis, we have provided a title to help identify the
exclusion’s main intent.
k. Collapse
Collapse
is initially totally excluded but limited coverage is added back in Section D.
as Additional Coverage–Collapse.
Collapse
is excluded. This means the following property conditions are also excluded:
(1)
Any type of sudden caving in or falling down
(2)
When the structural integrity of the building is lost or compromised. The
evidence of this could be parts of the property that separate from the rest of
the building or the building appearing to be in danger of caving in or falling
down.
(3)
Cracking, sagging, expanding, settling, shrinking, bulging, or bending, but
only as they relate to items (1) and (2) above
A
collapse can trigger another cause of loss. When that other cause of loss is
covered and damages covered property, the portion of the loss that is due to
the covered cause of loss is covered.
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Example: The bookshelf
suddenly collapses. A lit candle was sitting on top of the bookshelf when it
collapsed. The lit candle ignited the books and papers that had fallen to the
floor during the collapse. The collapse damage is not covered but the
resulting fire damage is covered.
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There
are two exceptions to this exclusion.
- The coverage provided in Section D.,
Additional Coverage–Collapse is not excluded. This exception prevents a
conflict between that Additional Coverage and this exclusion.
- When a collapse is caused by specified
causes of loss, building glass breaking, weight of rain on a roof, or
weight of people or personal property loss or damage from that collapse is
covered.
D. ADDITIONAL COVERAGE–COLLAPSE
This
additional coverage is necessary because the coverage form specifically
excludes collapse. Policies and coverage forms once provided collapse coverage.
However, broad legal interpretations forced rewriting collapse coverage as a
named cause of loss.
1. Collapse coverage
applies to abrupt collapse. As used in this coverage, abrupt collapse means
that the building or part of the building must abruptly fall down or cave in.
As a result of such falling down or caving in, the building or part of the
building cannot be occupied for its intended purpose.
2. Payment for such abrupt
collapse as described in item 1. is for only direct physical damage to the
collapsed building or the business personal property that is inside the
building. However, payment is made only if any of the following cause the
collapse:
a. Hidden decay. This
applies only if the insured was not aware of the hidden decay prior to the
collapse.
Related Court Case: Support Beam
Failure Excluded Under the Policy
b. Hidden insect or
vermin damage. This applies only if the insured was not aware of the hidden
insect or vermin damage prior to the collapse.
c. Defective construction
material or construction methods. This applies only if the collapse occurs
while the building is being built, remodeled, or renovated.
d. Defective construction
material or construction methods. This applies only if the collapse occurs
after a building has been built, remodeled, or renovated and depends on one of
the following contributing to the collapse:
Items a. or b. of this paragraph
Specified cause of loss
Glass breakage
Weight of people or personal property
Weight of rain that collects on a roof
3. There is no coverage
for any of the following:
- A building or any part of a building that is
in danger of falling down or caving in
- A part of a building that remains standing
even if it has separated from another part of the building
- A building or part of a building that is
standing but shows evidence that it may collapse due to bulging, sagging,
cracking, bending, leaning, settling, shrinking, or expanding
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Example: The Good Shepherd Church was built 90 years ago in a small rural area
next to the main road. It is now in the suburbs of a town along a major
highway. The church never moved but the town grew out to it. During choir
practice one evening, a few tiles in the sanctuary ceiling loosened and fell.
The next day, the building inspector who had been called to evaluate the
situation, condemned the building. He opined that over the years, the
building had shifted on its foundation and was now in imminent danger of
collapse. Collapse coverage does not apply to this situation.
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Related Court Case: Policy Is Ambiguous About Collapse
4. The following property
is covered only if it is considered covered property, the loss or damage is due
to collapse of a covered building, and items 2.a through 2d above cause the
building to collapse:
- Outdoor radio or television antennas
- Awnings, gutters, and downspouts
- Yard fixtures
- Outdoor swimming pools
- Fences
- Pier, wharves, and docks
- Beach or diving platforms or appurtenances
- Retaining walls
- Roadways, walks, and paved surfaces
5. There is coverage if personal
property abruptly falls down but the building in which it is situated does not
but only if all of the following apply:
- The collapse was due to a cause of loss
listed in 2.a through 2.d. above.
- The personal property that collapsed is in a
building.
- The personal property is not one of the
types listed in 4. above.
Coverage
does not apply if the only damage to the personal property is marring or
scratching.
6. Any cracking, bulging,
sagging, leaning, settling, expanding, or shrinking of personal property is not
treated as collapse. Coverage applies only if the personal property either
abruptly fell down or caved in.
7. This additional
coverage does not increase the coverage part limit of insurance.
8. Whenever the term
"covered cause of loss" is used throughout this coverage form, this
Additional Coverage–Collapse is included, subject to the description and
limitations this additional coverage provides.
