Karas v. Liberty Ins. Corp.

Summary

The court answered three certified questions concerning coverage for deterioration of concrete basement walls under a homeowners insurance policy. It held that the policy's undefined term "collapse" is governed by the substantial-impairment standard, but that coverage requires proof that the structure is in imminent danger of actual collapse; it also held that the policy's foundation exclusion unambiguously includes basement walls. The court therefore rejected both coverage theories based on the plaintiffs' alleged loss. No separate opinions were filed.