Is a Building Collapse Covered by Your Commercial Policy?

To the business owner, an unfortunate reality is the inevitability of property damage. It’s not a matter of “if” property damage will occur, but rather, “when” the business will suffer some degree of physical harm. Natural disasters arise more often than anyone would like. These disasters often bring strong winds, fire, and flooding. 

In extreme situations, a building may partially or completely collapse as a result of the damage suffered by the property. When all that’s left of a building is rubble, having a plan on how to proceed may be all a business owner has. 

An insurance coverage attorney understands the stress and anxiety associated with a destroyed building. Insurance companies that attempt to deny or delay paying on a valid building collapse claim must be handled directly. If a building collapse has caused you and your business to feel unstable, contact Pearson Legal, P.C. for a consultation. 

What causes buildings to collapse?

Understanding how a building collapse may occur can help a business owner better prepare for the next phase of their business operation. Here are some of the most common causes for building collapse:

• Simply put, buildings age just like everything else. Over time, a poorly maintained building becomes especially susceptible to structural issues, which can cause a collapse to occur. 
• In some instances, a building may be the victim of poor design or even construction errors. Building codes and regulations require that a structure be able to withstand strong winds and other natural elements. However, when a foundation, structural support, or other issue exists, there may not be sufficient protection that would allow the building to remain upright.
• Extreme weather events such as hurricanes, tornadoes, or high wind events, and snow can result in the partial or complete building collapse.
• Filing a commercial property claim after a building collapses

Unfortunately, commercial property policies can be vague or difficult to understand when it comes to building collapses. Many business owners have questions about whether a building collapse is covered by their particular insurance policy. 

Coverage will be determined by the cause of the building collapse. Thus, the building owner’s knowledge of any structural problems prior to the collapse will also be examined. If poor maintenance is found to have contributed to the collapse, then coverage may be denied by the insurance company. 

In fact, building collapses due to loss of structural integrity, cracking, sagging, bending, or bulging are usually excluded from coverage entirely. However, there are instances where an excluded cause of the collapse may be covered if there is an exception to the exclusion.

Don’t fight an insurance company alone- work with an experienced attorney 

It is an emotional and financial disaster when a commercial property collapses. So much work, time, and toil went into the creation of that building. Insurance policies, as we have seen, can extend coverage in the event of a building collapse. 

However, it is far from a given that your particular circumstances will be protected under the terms of your commercial insurance policy. What’s more, most insurance policies contain exclusions, exceptions, and stipulations, which also factor into coverage. With so much on your plate already, who could possibly keep up with all of these issues?

Pearson Legal, P.C., knows how quickly a building collapse can occur. Contact our office today for a consultation. We value the opportunity to serve commercial property owners who are facing difficulties with an insurance provider.