Collapse of Retaining
Wall Causing Damage

Our insured has a homeowners policy with form HO-3. Recently, hydrostatic pressure caused a retaining wall to collapse. Part of the wall landed on the dwelling's air conditioning condenser, resulting in considerable damage to the unit. Can we make a case for coverage for the loss?

Massachusetts Subscriber

Though the wall itself is not covered for loss by weight of water (exclusion 2.b.(2)) ensuing damage to the dwelling or other structures is covered—section I, Perils Insured Against, 3. “any ensuing loss to property described in coverages A and B not excluded or excepted.” Since the condenser is part of the dwelling, and since there is no exclusion for this “ensuing” loss, the damage to the unit is covered.

The only coverage applicable to the wall itself is by way of damage from building collapse and that is not the case here.