A building collapse is a devastating event. Whether it’s your home or a commercial property, the damage is often total — and the financial impact can be enormous. Naturally, you’d expect your insurance policy to protect you in this kind of situation. But unfortunately, collapse claims are some of the most contested and denied by insurance companies.
If your building has collapsed, here’s how to protect your rights, navigate the claims process, and ensure you get the full compensation you’re entitled to.
Step 1: File the Claim Immediately, But Proceed Cautiously
After the collapse, you’ll need to contact your insurance company and file a claim as soon as possible. They will almost certainly send out their own adjuster to inspect the damage. Here’s the issue: that adjuster works for the insurance company, and it’s common for their documentation and conclusions to be written in a way that favors claim denial or underpayment.
That’s why you should never go through this process alone. Before or immediately after the adjuster’s visit, you should bring in your own expert — like a public adjuster from On Site Adjusting, along with a licensed structural engineer — to independently evaluate the damage and determine the real cause of the collapse.
Step 2: Understand What Collapse Is (and Isn’t) Covered
Not all building collapses are covered by a standard homeowners or commercial insurance policy. Here’s what you need to know:
- Earthquake-related collapses are not covered unless you’ve specifically added earthquake coverage to your policy.
- Wear and tear, neglect, or poor maintenance are common reasons insurers use to deny collapse claims.
- Some policies only cover collapse if it’s caused by specific events like hidden decay, insect damage, or weight of snow/ice — not structural failure from long-term deterioration.
- Partial collapse might not trigger coverage unless the structural integrity of the building is compromised.
Insurance companies often use vague policy language and lean into these “gray areas” to justify a denial. This is exactly why having a public adjuster who understands the fine print is so important.
Step 3: Be Ready to Challenge the Insurance Company’s Narrative
If the insurance company sends a denial letter or tries to classify the loss as repairable instead of a total loss, don’t just accept it.
We’ve seen it happen time and again — insurance adjusters claim the structure can be repaired when in reality, it’s unsafe or financially impractical to do so. Or they may try to blame the collapse on “deferred maintenance” or pre-existing issues.
At On Site Adjusting, we work with structural engineers to gather clear, professional documentation that identifies the true cause of the collapse. This helps us prove that the event falls within your policy’s covered causes of loss — and fight for full replacement value rather than a partial payout or denial.
Step 4: Demand Replacement Coverage — Not Just Repair
Even if the insurer accepts your claim, they may attempt to lowball the payout by offering to repair parts of the structure rather than cover a full rebuild. That’s often not realistic — or safe.
Your public adjuster and structural engineer team will help:
- Prove that repair is not structurally sound or cost-effective
- Provide detailed replacement cost estimates
- Ensure the claim is handled as a total loss, where appropriate
- Push for full coverage based on your policy’s replacement cost value
Final Thoughts: Don’t Fight This Alone
Insurance companies are skilled at finding loopholes and technicalities when large claims are involved especially with something as serious and costly as a building collapse. The odds are not in your favor if you try to handle the process alone.
At On Site Adjusting, we’ve helped property owners successfully navigate collapse claims by bringing in the right experts structural engineers, estimators, and experienced public adjusters to take control of the narrative, properly document the cause, and push the insurance company to pay what they owe.
What You Should Do Right Now:
- Contact On Site Adjusting for a free claim review
- Bring in a licensed structural engineer to inspect the collapse
- Get a full policy review to understand what’s covered
- Let experienced professionals handle communication with your insurer
