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LOUISIANAAGENT
COLLAPSE COVERAGE
By Bill Wilson, InsuranceCommentary.com July 29, 2021 https://insurancecommentary.com/legal/#reprints
The recent tragedy in Surfside, Florida has raised questions about what coverage commercial property forms provide or don’t provide for building collapse. From the standpoint of ISO industry standard forms, collapse is addressed by ISO’s primary Causes of Loss forms. This article references ISO’s CP 10 30 10 12 – Causes Of Loss – Special Form and, given that Florida has legislated coverage for certain types of collapse, the ISO CP 01 25 02 12 – Florida Changes endorsement. First of all, the CP 10 30 form EXCLUDES collapse of property or any part of the property, including:
(1) An abrupt falling down or caving in; (2) Loss of structural integrity, including separation of parts of the property or property in danger of falling down or caving in; or (3) Any cracking, bulging, sagging, bending, leaning, settling, shrinkage or expansion as such condition relates to (1) or (2) above. However, there are three categorical exceptions to the exclusion. First, if the collapse results in a Covered Cause of Loss at the described premises, the loss or damage caused by that ensuing cause of loss is covered. Second, the exclusion doesn’t apply to the extent that coverage is provided by the Additional
