
In Imminent Danger Of Collapse – A Claims Scenario
August 27, 2009
During a periodic inspection a client discovered some corrosion and deterioration in the pier located directly underneath their downtown Seattle premises. The corrosion was significant and caused a portion of the building to become untenable.
As most property insurance policies have exclusions for wear and tear, rot, deterioration, corrosion and rust, the insurer’s adjuster initially turned down the claim based on their interpretation.
The Parker, Smith & Feek Claims Department recommended that the client engage a Structural Engineer. The engineer was able to demonstrate that the building was at risk of “imminent collapse”.
Parker, Smith & Feek then pointed the adjuster to the special coverage condition for collapse, as well as to several Washington State court case decisions on “imminent collapse”.
After lengthy discussions, over many months, the insurer finally accepted Parker, Smith & Feek’s reasoning, and they accepted coverage for the claim.
Our client is now receiving coverage under their property policy. While the final cost estimate has not been determined, it is anticipated that our client will receive in excess of $1.8 million dollars.
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