A "broad form" homeowners policy contained the following insuring provision: "We cover direct loss to the property owner insured under the Dwelling and Personal Property Coverage caused by . . . 13. Collapse of buildings or any part of a building . . . . Collapse does not include settling, cracking, shrinkage, bulging or expansion . . . ."

The insured made claim when large cracks and bulges were observed in the living room ceiling after he and his wife had lived in the house for nine years. A contractor he hired to inspect the damage reported that the sheetrock had separated from the truss or rafter, but could not determine the cause of the separation. The insurer denied the claim on the basis of "no coverage." In the course of litigation, the insured appealed a trial court judgment in favor of the insurance company.

The insurer contended that "collapse" means total destruction or caving in and further pointed to the specific policy language that, with respect to coverage provided, the named peril does not include "settling, cracking, shrinkage, bulging or expansion."

Citing various precedents and authorities, the appeal court said that the familiar rules of construction require the terms used in insurance policies "to be construed in their plain, ordinary and popular sense." Referring to Webster's Third New International Dictionary 443 (1961) for such meaning, the court found "collapse" defined as follows:

"1: to break down completely: fall apart in confused disorganization: crumble into insignificance or nothingness: disintegrate. . . 2: to fall or shrink together abruptly and completely: fall into a jumbled or flattened mass through the force of external pressure: fall in. . . 3: to cave in, fall in, or give away: undergo ruin or destruction by or as if by falling down." Other definitions examined were similar.

The court said: "Applying the ordinary meaning of the word to the facts as found, the ceiling clearly has not 'collapsed.' Accordingly, there is no coverage under the policy, and the trial court is affirmed."

Editor's Note: "Collapse" has been removed from the Perils Insured Against section and included under the Additional Coverages section of policies used by numerous companies. It is made clear in most such policies that "collapse" is covered only when caused by specified perils enumerated with respect to Coverage C, plus several other stated causes.

(OWENS ET UX., Plaintiffs, Appellants v. TENNESSEE FARMERS MUTUAL INSURANCE COMPANY, Defendant, Appellee. Tennessee Court of Appeals, Eastern Section. C.A. No. 127. June 9, 1989. CCH 1989-90 Fire and Casualty Cases, Paragraph 1933.)