Tag Archives: Ordinance and Law Coverage

Can My Business Recover Additional Income Loss If Code Upgrades Are Delaying the Time to Complete Repairs?

Business Interruption coverage protects the potential earnings of the insured business while its operations are suspended as a result of damage caused by a covered peril. The period of restoration has a direct effect on the actual loss suffered. A typical definition in most ISO forms of the “period of restoration” is:… Continue Reading

Understanding Commercial and Residential Ordinance and Law Coverage as Explained by Christopher Boggs

Ordinance and Law Coverage generates a lot of questions whenever I give a speech about the numerous building codes which impact construction. Christopher Boggs is a great insurance educator. Two chapters from his book, Wow! I Never Knew That!: 12 of the Most Misunderstood and Misused P&C Insurance Coverages, Concepts and Exclusions, provide some of the … Continue Reading

How Does the Ordinance Section of My Insurance Policy Affect the Florida “25% Rule”?

Section 708.1.1 of the Florida Building Code, often referred to as the “25% Rule,” implements guidelines for roof replacement requirements. The section states, Not more than 25 percent of the total roof area or roof section of any existing building or structure shall be repaired, replaced or recovered in any 12-month period unless the entire … Continue Reading

What You Don’t Know About Ordinance or Law Coverage Can Hurt You!

Note: This guest blog post is by Brent Winans, Vice President of Clear Advantage Risk Management in Delray Beach, Florida (www.clearadvantagerisk.com). He provides fee-based (no insurance sales) risk management consulting services to larger clients and serves as an expert witness on both sides of agent errors and omissions cases across the country. Even if your … Continue Reading

What Constitutes Enforcement of a Building Ordinance or Law?

“Ordinance or law” property insurance coverage is typically triggered when, following a covered loss to a covered building, an insured incurs certain costs due to the enforcement of an ordinance or law1 requiring or regulating the demolition, construction, or repair of buildings.2 What does enforcement mean for purposes of triggering building ordinance or law coverage? … Continue Reading

What Triggers Ordinance or Law Coverage?

In our practice we are often called upon to represent clients where their claim for ordinance and law coverage has been denied. This is because ordinance and law coverage is one of the most misunderstood and incorrectly interpreted policy provisions there is. Although, one of our attorneys, Robert T. Trautmann, has previously written on the DEB … Continue Reading

When Is A Policyholder Eligible To Receive L&O And ALE Benefits?

Ordinance or law (“L&O”) coverage is “[c]overage for loss caused by enforcement of ordinances or laws regulating construction and repair of damaged buildings.”1 Additional living expense (“ALE”) coverage “reimburses the insured for the cost of maintaining a comparable standard of living following a covered loss that exceeds the insured’s normal expenses prior to the loss.”2… Continue Reading

During Peak Tornado Season, Do Oklahoma Policyholders Have Enough Coverage? – Oklahoma Coverage Series

As Steve Jakubowski, President of Impact Forecasting, recently noted, “Historically, May is the beginning of peak tornado season in the United States.”1 Since that means tornado season remains in full swing at this point, this installment of my Oklahoma Coverage Series will address whether Oklahoma policyholders have enough coverage.… Continue Reading

Ordinance and Law Coverage in New Jersey

When rebuilding in the aftermath of Hurricane Sandy, many property owners are getting hit by a second wave of stress when they find their property cannot be repaired as it was before because building codes have changed. It can be very expensive to bring a building up to code after it suffers storm damage. This … Continue Reading

New York Appellate Court Opinion Contains Good Discussion On Ordinance Or Law Coverage

The policyholder owned a historic three-story brick building in the City of Elmira, known as the Armory Building. On March 10, 2006, a windstorm caused a portion of the Armory’s southern wall to collapse. The policyholder hired an engineering firm to assess the Armory’s condition. The engineer concluded that the collapse of the southern wall was … Continue Reading

Dwelling Insurance Policyholders Beware – Some (Perhaps All) Insurers Believe That Florida. Statute 627.7011 Does Not Protect You

Who thinks Section 627.7011 of the Florida Statutes (entitled Homeowners’ policies; offer of replacement cost coverage and law and ordinance coverage) applies, or was at least meant to apply, to all types of residential insurance policies? I do, but my recent experiences suggest that… …most, if not all, insurers do not. In a Hitchcock-like voice, … Continue Reading

Ordinance or Law–An Additional Coverage Available Under Many Florida Residential Policies

Many residential insurance policies in Florida have additional coverage for “Ordinance or Law” or code upgrade coverage. I wanted to write about this additional coverage in the context of the Hurricane Law series because it is important to understand how this additional coverage kicks in during a typical residential hurricane claim. In South Florida, many … Continue Reading

Increased Cost of Compliance to Code and Ordinance or Law Coverage for a Typical Loss Situation

Every now and then, Courts follow the rule of law that insurance policies are supposed to be interpreted as a regular person would do so—not as a trained insurance law expert would interpret them. In DEB Associates v. Greater New York Mutual Insurance Company, 407 N.J. Super. 287, 970 A.2d 1074 (N.J.Super. A.D. June 1, … Continue Reading

An Insurance Risk Manager Gives Fantastic Advice to Policyholders Getting Ready for a Potential Hurricane Claim

At the Greater Delray Beach Chamber of Commerce Hurricane Seminar this morning, Brent Winans of the Plastridge Agency gave a fantastic presentation, "10 Ways to Get Ready for a Hurricane Claim in 10 Minutes." Winans holds the coveted CPCU designation and is Vice President of Risk Management Services.… Continue Reading