Court Upholds Denial of Collapse Coverage Where Building Still Stands

Building collapse ruin

The insured's place of business sustained damage due to failure of several trusses providing structural support to the building's roof. The failure was due to latent construction defects leading to an insufficient load bearing capacity.

October 2, 2018
Tred R. Eyerly - Insurance Law Hawaii

The Michigan Court of Appeals affirmed the trial court's decision finding the policy's collapse coverage did not apply. Cmty. Garage v. Auto-Owners Ins. Co., 2018 Mich. App. LEXIS 2680 (Mich. Ct. App. June 19, 2018).

The insured operated a truck repair business. In June 2016, the insured's place of business sustained damage due to failure of several trusses providing structural support to the building's roof. The failure was due to latent construction defects leading to an insufficient load bearing capacity. The roof began to sag while one of the walls bulged outward due to the sudden pressure overload. The insured hired a construction firm to install temporary shoring to support the roof and prevent further damage. All of the building's walls remained standing and, although the roof sagged, it also remained intact. However, the building could not be safely occupied until repairs were completed.

Mr. Eyerly may be contacted at te@hawaiilawyer.com



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