Homeowners Policy (HO)Question 320 of 474
A city condemns and demolishes a house for a zoning violation. On a Homeowners policy this loss is:
a.excluded as governmental action
b.covered under the ordinance rule
c.covered as a collapse of the building
d.excluded as neglect by the owner
Explanation
Governmental action means the destruction, confiscation or seizure of property by order of a public authority, and it is one of the standard Section I exclusions, so a demolition ordered by the municipality is not an insured loss. The collapse answer describes an abrupt structural failure from a listed cause, not a deliberate teardown carried out under a public order.
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