Legal Question in Insurance Law in Delaware

Termite - collapse

This is a tough question. Your state reference mentions PA, although you asked about Delaware law, which I don't know.

A recent PA appeals court decision held that where a house's floors had "settled" an inch or so, requiring extensive foundation and jacking work to prevent the house from eventually coming down, that "settling" was not a "collape" under the homeowner's coverage.

Your situation is a little different. THere's some force in the argument that a homeowner shouldn't have to wait until the damage gets that extreme. But the courts may take a very literal look and conclude that "collapse" means when the termite damage directly caused the building to come down, not if it happened because demolition and rebuilding was more economical than repair.

I feel for your difficult situation. The tension here is that insurance is supposed to be against the unexpected, accidental event. Insurance companies don't want to pay for items which are associated with maintenance.

It's a tough issue, but certainly well worth your consulting an attorney; I have no idea what the law in Delaware would be on this subject.

The above does not constitute legal opinion and is offered for the purposes of discussion only. The law differs in every jurisdiction, and you should not rely on any opinion except that of an attorney you have retained, who has a professional duty to advise you after being fully informed of all the pertinent facts and who is familiar with the applicable law.