Judge: Insurer Is Not Liable Under ‘Collapse’ Provisions For Hidden Decay Damages

Mealey's (July 11, 2016, 2:12 PM EDT) -- SEATTLE — Under Washington law, an insurer is not liable for damage to apartments from hidden decay under its policies’ “collapse” provisions, a Washington federal judge ruled July 7, finding that the insurer’s coverage decision and claims handling were reasonable (American Economy Insurance Co. v. CHL, LLC, No. 15-899, W.D. Wash.; 2016 U.S. Dist. LEXIS 88286).

(Order available. Document #69-160805-006R.)

In 2014, CHL LLC had renovation work performed on an apartment complex in Seattle it owns known as the “Masters Apartments.” During the work, decay of...
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