Collapse

On June 12, 2003 the California Supreme Court, in Rosen v. State Farm General Insurance Company, 98 Cal.App.4th 1322, 120 Cal.Rptr.2d 373 (Cal.App. Dist.2 06/03/2002) reversed the trial court and court of appeal's decision that an imminent collapse is sufficient to allow coverage. Upholding the plain language of the State Farm exclusion that limited coverage to a "collapse" where the structure has "actually fallen down or fallen into pieces" the Supreme Court rejected the Court of Appeal's application of "public policy" to allow it to rewrite the terms of the contract. The trial court, and the court of appeal declined to honor the policy's clear and unambiguous restriction of coverage because it would, in the court's view, "encourage property owners to place lives in danger in order to allow insurance carriers to delay payment of claims until the structure actually collapses..

 

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