Collapse Coverage on a Homeowners Policy

We are handling a collapse loss for a homeowners (HO 00 02 05 01) insured. The collapse was a result of hidden termite damage, so the loss is covered. But there is extensive additional damage to the sill plates and joists from the termites. If this were an HO 00 03 05 01, we could exclude coverage, but there is no exclusion under the HO 00 02. Surely coverage cannot be broader under a named perils policy than an open perils policy, but this appears to be the case.

Pennsylvania Subscriber

Although the named perils policy might appear to provide broader coverage, that is not the case. The open perils policy excludes what it does not mean to cover, and so lists "loss caused by …vermin, rodents, or insects" among the exclusions.  However, the named perils policy provides coverage for only those perils enumerated. There is coverage for collapse, but there is no coverage for the termite damage.

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