A policyholder decided to fight a lower court decision that denied coverage. Fourth Street Incorporated owned a building that was insured by Investors Insurance Group. Their building’s parapet wall shifted and was in danger of collapsing. The insurance policy issued by Investors included an endorsement that covered the building against "risks of direct physical loss involving collapse." The policy did not include a definition of "collapse."

Both Fourth Street and Investors hired engineers to inspect the wall. The two experts separately confirmed that collapse was inevitable unless the wall was repaired. However, the insurer denied the claim. Its position was that coverage was based upon actual rather than potential collapse of property. Fourth Street and Investors filed summary judgment. The lower court, agreeing with the insurer’s position, granted its motion and dismissed the claim.

Upon appeal, the higher court reviewed both parties’ positions. It focused on the lower court basing its decision on another case. That case decision ruled that a policy owed coverage only when property actually fell to the ground. Since the parapet wall only threatened collapse, the trial court decided that a coverage obligation was not triggered. The appeals court did not view things the same way. That court pointed out that the cited case involved a policy that had different wording. Unlike that case, Fourth Street’s policy wording stated that coverage existed for risks of loss involving collapse rather than merely collapse. In the higher court’s opinion, the policyholder suffered a loss involving collapse and that actual collapse was not necessary. The court also stated that the insurance company could have used appropriate wording if its intent was to only cover property that collapses. The lower court decision was reversed, resulting in finding coverage for Fourth Street’s claim.

401 Fourth Street, Incorporated, Appellant v. Investors Insurance Group, Appellee. No. 2003 PA Super. 154. Pennsylvania Superior Court. Filed April 22, 2003. Reversed. CCH Personal and Commercial Liability Cases, Paragraph 9709