Collapse Coverage
Definition:
Insurance protection for structural collapse caused by a covered peril.
Explanation:
Collapse coverage may apply if a building or part of a building falls in due to causes like hidden decay, weight of contents, or certain weather events. Many policies limit or exclude this coverage.
Example:
If heavy snow causes a roof to cave in, collapse coverage may pay for the repair.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.