Our insured is adding an addition to his building, which will require pile driving for the foundation. He has concerns the vibrations could damage the existing building. Under the CP 10 30 06 07 Cause of Loss – Special Form, earth movement is excluded. However the collapse added coverage seems to apply if defective materials or methods are used and the collapse occurs during the course of construction.

Would you see cracking or collapse as the result of vibration as a covered claim?

Pennsylvania Subscriber

Would the use of pile driving for the foundation normally be considered a defective method, and if so, why would the proper method not be used? If this the only way to build the addition, then it would seem that it would not be a defective method. We cannot make that determination, but if this is the correct way to address the construction, the additional collapse coverage would not apply. Damage caused by vibration would fall under the earth movement exclusion. Earth sinking, shifting, or rising that causes settling, cracking, or other disarrangement of foundations or other parts of realty is excluded. The exclusion applies whether caused by an act of nature or otherwise caused.