Collapse During Construction—Vehicle Peril as Cause of Collapse

Our insured is building a new home and we're using a HO-3 as a form of builders risk coverage. Two weeks after the cement wall was poured for the foundation, the contractor pushed the wall down while in the course of backfilling against it.

Item f. of the collapse agreement says that collapse that is caused by use of defective methods is covered if the collapse occurs during the course of construction. However, the collapse provision goes on to say that collapse of a foundation is not covered under this provision unless the loss is a direct result of the collapse of a building.

If the homeowners form does not cover this loss, is there a form to protect the owner? Please advise.

Ohio Subscriber

The agreement in subparagraph f. is inoperative because of the reason you cite: foundations are not covered for collapse because of the use of defective methods unless the foundation collapse is the direct result of the collapse of a building.

However, the first provision under the collapse agreement is agreement a., in which it is stipulated the collapse caused by any of the perils insured against in coverage C is insured. One of the coverage C perils is damage by vehicles. The wall was knocked over by a vehicle. This is the course we suggest you take in reporting the loss to the insurer.

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