INSURANCE LAW: Homeowners policy found ambiguous and may provide coverage for collapsing basement due to defective materials

The District Court holds that a homeowners policy is ambiguous in that it purports to cover loss to the house caused by hidden decay and defective materials and construction, yet purports to exclude coverage for loss to a foundation or retaining wall unless the result of a building collapse.  The court finds the words “foundation” and “retaining wall” ambiguous and denies the insurer’s motion.

Belz v. Peerless Ins. Co., (September 2, 2014)