Law and Ordinance
Property insurance policies often include a range of provisions to protect you when disaster strikes. Among these is law and ordinance coverage, a critical yet frequently misunderstood part of your policy. Designed to cover additional costs associated with bringing your property up to current building codes after damage, this coverage can mean the difference between a manageable repair bill and financial devastation.
Unfortunately, many insurance companies in Florida and Colorado deny, delay, or underpay claims involving law and ordinance coverage. At Florida State Public Adjusters, Inc., we specialize in earning policyholders the settlements they’re entitled to — including payments for code upgrades required by law. Below, we’ll explore how this coverage works, when it’s essential, and how we can help when insurers don’t play fair.
What Is Law and Ordinance Coverage?
Law and ordinance coverage, sometimes called building code coverage, pays for the additional costs of repairing or rebuilding a property to comply with updated local, state, or federal building codes after a covered loss.
This coverage is particularly important because:
Building Codes Evolve
Standards for electrical, plumbing, roofing, and structural safety frequently change, especially in states like Florida and Colorado where natural disasters are common.
Code Compliance Costs More
Older homes and buildings often require extensive updates to meet modern requirements, resulting in costs beyond what a standard policy covers.
When Is Law and Ordinance Coverage Necessary?
While law and ordinance coverage is essential in a variety of scenarios, here are some common and unexpected situations where it becomes critical:
A fire may destroy parts of a property, requiring you to replace only damaged sections. However, if local ordinances require the entire electrical system to meet updated safety standards, law and ordinance coverage pays for the additional upgrades.
2. Hurricane or Windstorm Damage
Hurricanes and windstorms can severely damage roofs. Even if only part of the roof is affected, Florida’s 50% Rule may require you to replace the entire roof if more than half of it is damaged. Law and ordinance coverage helps cover the cost of replacing the undamaged portion.
3. Flood or Water Damage
While flood damage isn’t typically covered under standard policies, water damage from other causes (like burst pipes or storm surges) might require code upgrades. For instance, replacing damaged flooring may also involve installing moisture barriers mandated by modern codes.
4. Sinkhole or Earthquake Damage
In Florida and Colorado, sinkholes and seismic activity can cause structural damage. Rebuilding to current standards, such as adding reinforced foundations or upgraded seismic retrofits, often exceeds the base policy’s payout.
5. Unexpected Scenario: Remodeling Gone Wrong
Imagine discovering during a renovation that your home’s wiring doesn’t meet current electrical codes. If your property suffers fire damage due to this outdated wiring, your insurer may only pay for restoring the damage to its pre-fire state — not the upgrades necessary to meet code. Without law and ordinance coverage, you would bear these additional costs.
Why Law and Ordinance Coverage Matters in Florida and Colorado
Florida
Florida’s building codes are among the strictest in the nation, particularly after Hurricane Andrew and other major storms. For example:
Roofing Standards
Upgraded Upgraded materials and installation methods are required to withstand high winds.
Flood Zones
Homes in flood-prone areas often need elevated foundations or additional waterproofing.
Without law and ordinance coverage, homeowners face significant out-of-pocket expenses to meet these stringent requirements.
Colorado
In Colorado, seismic risks and rapid urban development lead to frequent building code updates. Property owners may need to:
Reinforce Foundations
This is often required in areas prone to earthquakes or soil instability.
Upgrade Fire Protection
Fire-resistant materials and sprinkler systems are increasingly mandated.
Law and ordinance coverage ensures that repairs meet local standards without added financial stress.
How Insurance Companies Undermine Law and Ordinance Claims
Insurance companies often use tactics to minimize or avoid payouts for law and ordinance coverage, including:
1. Denial of Coverage
- Misinterpretation of Policy Terms: Insurers may argue that code upgrades aren’t covered because they classify them as “improvements” rather than necessary repairs.
- Scope of Damage Disputes: Carriers may claim the damage isn’t extensive enough to trigger code requirements.
2. Delays in Processing Claims
- Excessive Documentation Requests: Insurers might demand unnecessary paperwork to prolong the claims process.
- Multiple Inspections: Scheduling repeated inspections to delay settlement payments.
3. Underpayment of Claims
- Lowball Estimates: Adjusters may undervalue the cost of code compliance, particularly for structural or electrical upgrades.
- Coverage Cap Misapplication: Some policies have sublimits for law and ordinance coverage, which insurers may misapply to reduce payouts.
Proactive Steps to Protect Yourself
To minimize disputes and maximize your protection, consider these proactive measures:
Review Your Policy
Ensure you have adequate law and ordinance coverage and understand its sublimits.
Document Your Property
Maintain records of your property’s condition, including photos and videos.
Hire Experts Early
In the event of damage, consult public adjusters and contractors who understand code compliance requirements.
How We Can Help
We've represented hundreds of policyholders in disputes involving law and ordinance coverage.
Here’s how we advocate for you:
1. Comprehensive Policy Review
We analyze your insurance policy to identify coverage applicable to your claim, ensuring no overlooked provisions can reduce your payout.
2. Accurate Damage Assessment
Our team conducts thorough inspections and works with engineers, contractors, and code specialists to document required upgrades.
3. Documentation and Evidence Gathering
From photos and repair estimates to expert opinions, we compile a comprehensive case file to strengthen your claim to law and ordinance payment.
4. Expert Collaboration
We work with contractors, engineers, and other professionals to provide detailed estimates for repairs and code updates whenever necessary.
5. Claims Management
From filing paperwork to managing inspections, we handle every step of the process so you don’t have to.
6. Negotiation with Insurers
With years of experience handling property insurance claims, we use evidence, scientific expertise, and policy analysis to counter insurers’ attempts to deny or underpay.
7. Escalation When Necessary
If negotiations fail, we pursue mediation, arbitration, or appraisal to resolve disputes. In cases of blatant bad faith, we help file civil remedy notices to hold insurers accountable.
8. Support Every Step of the Way
From filing the claim to resolving disputes, we’re with you at every stage of the process, reducing your stress and allowing you to focus on restoring your home.
Why Choose Us?
When you’re dealing with the aftermath of a hurricane, flood, sump pump overflow, or HVAC leak, you need your insurer to be on your side. Unfortunately, most people have insurance company horror stories.
We bring experience, expertise, and a commitment to securing the best possible outcomes for our clients on their water claims.
Here’s what sets us apart:
- Licensed Professionals: Our team is fully licensed and bonded in Florida and Colorado, giving us the knowledge and advanced training to represent you with confidence.
- Deep Industry Knowledge: With years of experience in Florida’s and Colorado's unique insurance landscapes, we understand the challenges homeowners face regarding their damages.
- Client-Centered Approach: Unlike the carrier's field adjusters, we work exclusively for policyholders — your best interests are always our #1 priority.
- Proven Track Record: We've helped countless homeowners recover fair settlements, even with the most complex claims.
We will always offer the following:
- Free, no-obligation consultations
- Experienced, licensed public adjusters
- Thorough, accurate damage assessments
- Aggressive negotiation with insurers
- Complete claim management, from start to finish
Law and ordinance coverage is an essential safeguard for homeowners and business owners in Florida and Colorado. Whether your property is damaged by natural disasters, structural failures, or unexpected scenarios, this coverage ensures that repairs meet modern building codes.
We’re committed to helping policyholders overcome insurance challenges and secure the full benefits of their policies. If your law and ordinance claim has been denied, delayed, or underpaid, contact us today for a free consultation. Let us advocate for you and help you rebuild with confidence.
Call (888) 518-5678 or email admin@floridastatepa.com to get started!