Karas v. Liberty Ins. Corp.

Summary

The court held that the policy's undefined term "collapse" is ambiguous and incorporates the substantial-impairment standard, but that standard requires proof that an otherwise standing home is in imminent danger of actual collapse. It also held that the policy's foundation exclusion unambiguously includes concrete basement walls. The court answered all three certified questions affirmatively in the stated manner and left application of the standard to the federal court.