Does Insurance Cover Building Collapse. Co., 43 the court observed that under the subject policy, the insurer “pays for ‘direct physical loss or damage to covered property. Coverage is only provided if a certain set of dangers causes the collapse.
The policy does not cover imminent collapse, as [the insured] argues. Primarily, how to recover those who became buried in the rubble, what caused the collapse, and if insurance could cover such substantial losses. Furthermore, because building and structure repairs after collapse tend to be costly, insurance companies commonly deny.
