Building Must Fall To Trigger Collapse Coverage

Allstate alleged 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. Windcrest appealed.

In Windcrest Owners Ass’n v. Allstate Ins. Co., No. 82836-3-I (Wash. App., Div. 1, Dec. 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 Washington Court of Appeals read the full policy and applied its language to the facts presented by construction experts.

Windcrest Condominiums, which consisted of 15 units in 2 buildings, was completed in 1995. Allstate provided a commercial property insurance policy from November 2002 through 2017.

In October 2018, Windcrest notified Allstate of a property damage claim based on a structural report prepared by Dibble Engineers. The report noted decay consistent with substantial impairment of structural integrity to one of the buildings.