Opinion ID: 1179456
Heading Depth: 3
Heading Rank: 2

Heading: hidden decay.

Text: The term hidden decay is not defined in the policy. However, in its brief, Alaska National equates decay with rot and presents its interpretation of this policy provision: Coverage is provided under the collapse portion of the policy if a physical collapse occurs as a result of vermin, rot, (decay) [6] or a latent defect. (Emphasis added; footnote added). Alaska National does not deny that the condition of the Whispering Creek complex was caused by rot. Rather, Alaska National argues that it is not liable because damage caused by rot is excluded from coverage under the policy. Yet by Alaska National's own interpretation, if collapse is caused by rot (decay), the collapse provision of the policy would cover the claim. On these facts, the distinction between hidden decay and rot is a distinction without a difference. Alaska National recognizes that decay and rot are synonymous terms and concedes that the condition of the Whispering Creek complex was caused by rot. The policy covers collapse caused by hidden decay. The policy therefore covers collapse caused by rot.