The point of this blog is to implore policyholders to buy what is commonly called code upgrade coverage – formally known as law and ordinance coverage. I was thinking about this after reading two different articles discussing very different losses in very different parts of the world.
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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 best explanations of this often misunderstood coverage. Insurance agents, property insurance adjusters, public insurance adjusters, and property insurance lawyers should have this book as a reference in their library.
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I got a call this morning from a public adjuster wanting to discuss building code coverage.1 In doing some research for her, I came across an article advocating more stringent building codes: Marking 10 Years Since Katrina, Consumer Agency Calls For Stiffer Building Codes. Considering the article in connection to recent conversations I’ve had with public adjusters and general contractors, it made me wonder: do we need better building codes, or simply better enforcement of existing building codes?
Ray Kirby of Childress Engineering spoke at the First Party Claims Conference regarding the practical and technical issues building ordinances and laws have on insurance claims. He provided me with an excellent paper, Insurance and Building Codes, which touches on some of the topics he spoke about in his presentation.
An article in the Insurance Journal, National Flood Insurance Program Set to Expire Tomorrow, caught my eye. I think the threat of expiration is political gamesmanship, as indicated in the piece:
“John Prible, government affairs for the Independent Insurance Agents and Brokers of America, says the omnibus bill funding is currently being
Dr. Steve Lyons, The Weather Channel’s Tropical Weather Expert, has admitted that he has been interested in property insurance and rates for the past fifteen years. He recently posted on the Weather Blog his opinion is that Florida’s only long term solution to high insurance rates is to mandate that building codes be enforced so