Does Insurance Cover Structural Collapse?

Insurance policies can protect against unexpected property damage, including structural collapse. Coverage depends on the policy’s specific terms. It is not universal and is influenced by the cause and policy scope.

Defining Structural Collapse for Insurance

For insurance, “structural collapse” has a specific meaning beyond general property damage. It typically refers to a building or significant part abruptly falling or caving in. The structure often becomes unusable. While some policies consider imminent danger a collapse, most require actual physical falling or caving in.

Policies distinguish between complete and partial collapse. For instance, a caved-in roof section or wall may qualify as partial collapse. However, gradual deterioration, like slow sagging or settling foundations, is not considered a “collapse” under standard definitions. These are usually maintenance concerns, not sudden insurable events.

Insurance Policies and Their Collapse Coverage

Homeowners’ and commercial property insurance policies may cover structural collapse. Common homeowners’ policies include HO-3 (Special Form) and HO-5 (Comprehensive Form). An HO-3 policy typically provides “open perils” coverage for the dwelling, covering all causes of loss unless excluded, while personal property has “named perils” coverage. An HO-5 policy offers broader “open perils” coverage for both dwelling and personal property.

Commercial property policies also address collapse, often through specific clauses or as “additional coverage.” These policies vary; some cover collapse only if it results from another covered peril like fire, while others offer broader protection. Understanding “named perils” versus “open perils” coverage is important for collapse protection. Named perils policies cover only explicitly listed events, requiring the insured to prove the cause is covered. Open perils policies cover everything unless excluded, shifting the burden to the insurer to prove an exclusion.

Commonly Covered Causes of Collapse

Policies typically specify events that trigger structural collapse coverage. Hidden decay is a common covered cause, provided it was unknown to the insured before collapse. Damage from hidden insect or vermin infestation leading to collapse may also be covered if concealed. These provisions recognize unseen destructive processes.

The weight of contents, equipment, people, or animals within a structure can also be a covered cause. Additionally, the weight of rain or snow on a roof is frequently included. Some policies may also cover collapse from defective materials or methods in construction, remodeling, or renovation, typically only if it occurs during the work. However, broader policies might extend this to post-completion collapses due to defective materials, with the insurer potentially pursuing recovery from the contractor.

Common Exclusions from Collapse Coverage

Many policies contain common exclusions that limit structural collapse coverage. Earth movement, including earthquakes, landslides, mudslides, or sinkholes, is a frequent exclusion. These perils typically require separate, specialized policies or endorsements. Similarly, flood damage is almost universally excluded from standard property policies and necessitates a separate flood insurance policy.

Gradual processes like wear and tear, deterioration, rust, or mold are generally not covered causes of collapse. Insurance is for sudden, unexpected events, not slow degradation or lack of maintenance. Faulty design, construction, or maintenance are often excluded, unless directly triggered by a separate, covered peril or if the policy contains an “ensuing loss” clause. Settlement, cracking, shrinking, bulging, or expansion of foundations, walls, floors, or roofs are typically excluded unless a direct result of a covered peril. Governmental action or ordinance mandating demolition or repair is another common exclusion.

Filing a Structural Collapse Claim

When a structural collapse occurs, initiating an insurance claim involves several steps for a smooth process. Before contacting the insurer, gather all incident information. This includes the precise date and time of collapse, a detailed damage description, and your policy number. Documenting the scene with photographs and videos is crucial, as is obtaining reports from engineers or contractors who assessed the damage.

To initiate the claim, contact your insurer’s claims department promptly via phone, online portal, or mobile application. The insurer will assign a claims adjuster to inspect the property, assess damage, and determine the cause. Maintain thorough records of all communications with the insurer, including dates, times, names, and conversation summaries. Timely notification to your insurance company is a requirement, as delays could impact the claim’s outcome.