BROADCASTS.com

b'

Building Must Actually Fall Down for Collapse to be Covered 

Windcrest Owners Association filed a lawsuit against Allstate Insurance  after the company declined a claim for property damage to a building in  its condominium development. Allstate moved for summary judgment,  alleging that the property damage was not covered as a "collapse" and  was excluded from coverage because it resulted from faulty construction  and maintenance. The trial court granted summary judgment dismissing  Windcrest\'s claims. 

 In Windcrest Owners Association, a Washington nonprofit corporation v.  Allstate Insurance Company, an Illinois company, State Farm Fire And  Casualty Company, an Illinois company, No. 82836-3-I, Court of Appeals  of Washington, Division 1 (December 12, 2022) Windcrest sought payment  to repair a building in severe distress as a result of wear, tear, and  defective construction under a "collapse" coverage. The Court of Appeals  read the full policy and applied its language to the facts presented by  construction experts.

FACTS  

Windcrest Condominiums, which consists of 15 units in two buildings, was  completed in 1995. Allstate provided a commercial property insurance  policy from November 2002 through 2017.  Allstate, conducting a good faith investigation of the claim, retained  construction consultants from Madsen, Kneppers & Associates, Inc.  (MKA) to conduct an inspection and evaluation of causation of the damage  at Windcrest. MKA concluded that there were sites of noted decay of  structural components but no evidence of collapse "defined as an abrupt  falling down or caving in," as required for coverage by Allstate\'s  policy.  Windcrest sued Allstate, alleging breach of contract and bad faith.  Allstate moved for summary judgment; the trial court granted the motion  and dismissed the claims with prejudice.  ANALYSIS  An insured has the burden of proving that coverage is triggered, while  the insurer has the burden of proving that an exclusion applies.  Collapse Coverage