Is Collapse Covered by Homeowners Insurance?
Demystify homeowners insurance coverage for property collapse. Learn what's typically covered, common limitations, and essential claim steps.
Homeowners insurance provides financial protection for your dwelling and personal belongings. An insurance policy defines what constitutes a covered collapse and its circumstances.
Understanding Covered Collapse
A standard homeowners insurance policy (HO-3 form) includes coverage for the collapse of a building or a portion. This coverage is not for a structure merely showing signs of distress like cracking, bulging, or settling. Instead, it requires an “abrupt falling down or caving in” that renders the building unusable. The policy details specific perils that must cause the collapse for coverage.
Covered causes include hidden decay, if unknown before collapse. Hidden insect or vermin damage, such as from termites, is covered if concealed. The weight of contents, equipment, animals, or people also covers abrupt collapse. The weight of rain accumulating on a roof is a covered peril. Defective materials or construction methods are covered only if collapse occurs during construction, remodeling, or renovation.
Common Exclusions for Collapse
Homeowners insurance policies contain exclusions regarding collapse. Damage from earth movement (earthquakes, landslides, sinkholes) is not covered under a standard policy and requires separate insurance or an endorsement. Flood damage, which can lead to structural failure, is excluded and requires a separate flood insurance policy.
Damage caused by general wear and tear, deterioration, or lack of maintenance is not covered, as these are preventable issues. If a structure gradually weakens due to neglect, any resulting collapse would be excluded. Faulty construction or defective materials are excluded unless the collapse occurred during the construction or renovation process. Foundation issues, including settling, cracking, or bulging, are also excluded unless they are a direct result of a covered collapse.
Submitting a Collapse Claim
If you suspect your property has experienced a covered collapse, prompt action and thorough documentation are needed. Immediately document the damage with detailed photos and videos from multiple angles. This evidence illustrates the extent and nature of the collapse. If safe, take reasonable steps to secure the property to prevent further damage, such as boarding up openings or shoring up unstable areas. Record any expenses for these mitigation efforts.
Gather all relevant documents, including your homeowners insurance policy, prior inspection reports, and records of repairs or renovations. Review your policy to understand the specific claim filing procedures, deadlines, and requirements for professional assessments. Policies outline the information needed for the initial report and the timeframe within which the claim must be filed.
Contact your insurance company to report the potential collapse. Provide incident details: date, cause (if known), and damage extent. After filing, the insurer assigns a claims adjuster to inspect the property, assess damage, and determine if it meets the policy’s definition of a covered collapse. Cooperate fully with the adjuster, providing requested documentation and property access, and maintain clear communication throughout the claims process.