Is Building Collapse Covered by Insurance?
When a building collapses, it’s a catastrophic event, causing extensive damage and posing serious risks to both property and lives. Understanding whether a building collapse is covered by insurance requires a careful examination of your policy, consideration of the circumstances surrounding the collapse, and adherence to maintenance responsibilities. By being proactive in consulting with an experienced attorney, you can work through the challenges of insurance coverage and protect your property and assets.
Define Building Collapse Under New York Law
Under New York law, the term "building collapse" refers to the catastrophic failure or falling down of a structure, leading to a significant and often severe loss of the building's structural integrity. The collapse may involve the entire structure or a substantial part of it. New York law recognizes that ceiling collapses can result from various causes, and legal implications may vary based on the circumstances surrounding the collapse.
Different types of scenarios that may lead to a building collapse:
- Structural Defects
- Foundation Issues
- Poor Maintenance
- Natural Disasters
- Explosions or Fires
In the case of Royal Indem Co. v. Grunberg, 155 A.D.2d 187, 553 N.Y.S.2d 527 (3rd Dept. 1990), it was determined that a building doesn’t necessarily need to fall down or get destroyed. It can also be in imminent danger of collapsing to qualify for insurance coverage.
When is a Building Collapse Covered Under Insurance in New York?
The coverage of a building collapse under insurance in New York depends on the specific terms and conditions outlined in the insurance policy. These are a few key factors that may determine whether a building collapse is covered:
All-Risk vs. Named Perils Policies
All-risk policies generally cover a broad range of risks unless specifically excluded. Named perils policies, on the other hand, explicitly list the events covered. Property owners should check their policy type to understand the scope of coverage for a building collapse.
Exclusions
Insurance policies typically have exclusions, which are specific events or circumstances not covered by the policy. Some policies may exclude coverage for certain types of building collapses, such as those caused by gradual deterioration or lack of maintenance.
Maintenance and Negligence
Insurance policies may have provisions related to the property owner's responsibility for maintenance. If a building collapse is a result of neglect or failure to address known issues, it may impact the coverage.
Professional Evaluation
Insurance companies may conduct investigations to determine the cause of a building collapse. An experienced attorney can engage professionals, such as structural engineers, to assess and provide reports on the collapse's cause. This can help strengthen the insurance claim.
Property owners should carefully review their insurance policies, paying attention to terms, conditions, exclusions, and any endorsements. Consulting with an insurance professional or legal advisor can provide guidance on the specific coverage and steps to take in the event of a building collapse.
Determining Liability for a Building Collapse in New York
These are a few parties that may be held liable:
Property Owner
The property owner is often considered responsible for maintaining the safety and integrity of the building. If the collapse is due to negligence, lack of maintenance, or failure to address known structural issues, the property owner may be held liable.
Contractors and Builders
If the collapse is a result of faulty construction, poor workmanship, or defects introduced during the building process, contractors, architects, and builders may be held liable. This can include issues with the foundation, structural elements, or materials used.
Design Professionals
Architects and engineers who were involved in the design and planning of the building may be held liable if the collapse can be traced back to design flaws or errors.
Manufacturers of Defective Materials
If the collapse is caused by the failure of materials, such as substandard steel, concrete, or other construction components, the manufacturers of these materials may be held liable for supplying defective products.
Government Entities
In some cases, local government entities may be held liable if the collapse is linked to issues such as failure to inspect, approve, or enforce building codes and regulations.
Maintenance Companies
If the collapse is a result of inadequate maintenance, companies hired to inspect, maintain, or repair the building may be held liable if they failed to address known issues.
Adjacent Property Owners
If construction or excavation work on adjacent properties contributes to the collapse, those property owners or developers may be held partially responsible.
Determining liability often involves a thorough investigation by experts, including structural engineers and legal professionals. Your attorney will understand the specific circumstances surrounding the collapse, contractual agreements, building codes, and maintenance records to assign responsibility.
Laws Governing the Safety of a Building in New York
- New York City Building Code: The NYC Building Code establishes the standards for construction and building safety. It covers various aspects, including structural design, fire protection, plumbing, electrical systems, and more.
- Local Law 33 (LL33) of 2007: LL33 mandates the inspection of exterior walls and appurtenances of buildings greater than six stories in height. The law is designed to identify and address unsafe conditions related to facades.
- Local Law 11 (LL11) of 1998 (Now FISP - Facade Inspection Safety Program): The FISP requires periodic inspections of the facades of buildings higher than six stories. It aims to ensure that building facades are well-maintained and do not pose a threat to public safety.
- Safety Registration Program (Local Law 81 of 2017): This law requires construction and demolition workers to undergo mandatory safety training. It aims to improve safety conditions on construction sites and reduce accidents.
Obtaining Compensation for Victims of Building Collapse in NYC
Personal Injury Claims
Individuals who sustain injuries in a building collapse may file personal injury claims against parties deemed responsible. This could include the building owner, contractors, architects, engineers, or maintenance companies. Compensation may cover medical expenses, lost wages, pain and suffering, and other damages.
Wrongful Death Claims
In cases where a building collapse results in fatalities, surviving family members may file wrongful death claims. Compensation may include funeral expenses, loss of financial support, and emotional distress.
Workers' Compensation
Construction workers injured during a building collapse may be eligible for workers' compensation benefits. This provides coverage for medical expenses and a portion of lost wages. It is available regardless of fault in New York.
Product Liability Claims
If a defective building component or construction material contributed to the collapse, victims may file product liability claims against manufacturers or suppliers. Compensation may cover medical costs, property damage, and other losses.
Premises Liability Claims
Property owners have a duty to maintain safe premises. Victims may file premises liability claims against owners if negligence in building maintenance or inspections contributed to the collapse. Compensation may include medical expenses and other damages.
Insurance Claims
Victims may acquire compensation through insurance claims. This could involve the building owner's property insurance, liability insurance, or other relevant policies. Insurance may cover medical costs, property damage, and legal expenses.
Government Compensation Programs
In some cases, victims may be eligible for compensation through government programs or funds established for disaster relief. These programs may provide financial assistance for medical expenses, housing, and other needs.
Class Action Lawsuits
In situations where multiple individuals are affected by a building collapse, victims may join or initiate class action lawsuits. These lawsuits streamline legal processes and may result in a collective settlement for affected parties.
Choose the Most Results-Driven Personal Injury Law Firm with a Track Record of Huge Settlements and Verdicts
The Law Offices of Michael S. Lamonsoff can help you handle the legal challenges associated with building collapse claims. With a proven track record of obtaining substantial compensation for victims, 'The Bull' and his team are your staunch advocates.
Attorney Michael S. Lamonsoff is a relentless force known for obtaining millions in compensation for clients. Our results speak volumes, like the $37 million awarded to an elevator mechanic or the $16 million verdict against the NYC Department of Education.
To schedule your free consultation, call us at 212-962-1020 or fill out this online contact form.