After a natural catastrophe, you’ve likely sustained large and severe property losses. What often comes as an “aftershock” to the catastrophe, are the higher costs to rebuild according to the latest building codes…WHICH ARE

NOT COVERED UNLESS… you purchased an Endorsement to your policy called either:

* “Increased Cost of Construction” (with NFIP & Flood policies) OR
* “Ordinance or Law” (possibly with your TWIA policy, and definitely) with your Homeowner policy

Otherwise, your Insurance Company’s agreement with you (found in your policy) is to “… pay the cost to put you back the way you were”. This would not be to put you back as the Building Department requires your building to be put back (reconstructed).

It will just be your “tough luck” if you don’t have this Endorsement. And, Heaven forbid that your Structure is damaged (according to an estimate to be made by your Building Department) more than 50% of its “assessed value”. Then, you will need to bring the entire Structure “up to current code”; and your Insurance Company will not pay you for required code change expenses…

UNLESS YOU BOUGHT one of those Endorsements, which would cover this expense…. up to the percentage of the Structure limit with the Endorsement that you purchased.

With NFIP and Flood policies, you are only able to purchase a maximum of $30,000.00, NO MATTER WHAT YOUR Structure limit actually is. This Endorsement (with other than NFIP and Flood policies) is available in amounts that are A PERCENTAGE of your Structure limit. You usually are able to purchase this Endorsement in the following percentages: 10%, 25%, 50%, and 100%.

If this endorsement came with your policy (or comes with some future purchased policy), it will most likely be only 10% of your Structure’s limit. And this kind of expense can, and very often is, very expensive for you… especially when it is “out of pocket”.

A very good rule of thumb to determine the percentage of this Endorsement to purchase, is to use the number found in the percentages available (10%, 25%, 50%, and 100%) as the probable MAXIMUM NUMBER OF YEARS for which this percentage will be sufficient, or very close to sufficient. In other words, if your home is 10 years old (from the date of original construction), then 10% will probably be sufficient, or very close to sufficient. Should your home be between 10 and 25 years old, then 25% should do.

If your home is between 25 and 50 years old, then 50% should cover almost all of this uncovered cost to you.

But if your home is older than 50 years of age, then you should purchase 100% Endorsement coverage. And since my home was originally built in 1958, I have 100% “Ordinance or Law” Endorsement with my policy. And this costs me about $125.00 to $150.00 additional each year, with my Homeowner policy; and about $50.00 (more or less) with my NFIP policy. Wind coverage is included in my home State with our Homeowner policy; so I don’t need to buy that Endorsement with this policy.

Here are some areas where structural building code updates are often required:

1. Electrical Services and Wiring Updates: Electrical service, junction boxes, wiring loads all may have different requirements now than when your structure was built.
2. Wiring Material and Wiring Protection. Types of wire, wrapping, shielding and protection may be affected by updated building codes.
3. Framing Materials. Types of wood (2×4’s, 2×6’s, etc., found throughout the entire walls and roof areas, both in the Structure and the Garage-whether attached or detached).
4. HVAC Equipment. Efficiency, placement and weather requirements may have changed.
5. Handicap Access
6. Ramps and Doorways. Codes for providing convenient handicap access have probably been updated.
7. Kitchen and Bathroom. Fixtures allowing greater conveniences and assistance for handicap in these areas may have updates.
8. Water Systems and Plumbing Updates
9. Plumbing and Sprinkler Systems. Metals, Shut off valves, pressure loads, and other components may now be vastly different than when your structure was built.
10. Hurricane Preparedness Code Updates
11. Exterior Doors and Windows. If wind or water can easily enter a house or commercial building, major damage to the structure can result. Ordinances and code requirements for the bracing and strengthening of windows, doors and garage doors are often necessary.
12. The Roof. Wind resistance standards have often been updated. Also, types of roof structures and shapes have often been updated. Gable roofs have a large “A” shape which can absorb a lot of storm energy, and may now have restrictions or specific strengthening requirements when being rebuilt.

Conforming to the latest building codes present a very challenging insurance recovery dilemma.

Tips for getting the most from your claims recovery process:

* You need to document everything, people you talk to, dates, phone calls, etc.
* Get to know and use your Local and State Insurance Department and Consumer Affairs Divisions as a resource for any information concerning how to get the most for your insurance claim.
* If a contractor or Insurer, Agent, or Adjuster, is doing anything that you deem unfair, you need to ask the Insurance Department to investigate them for a violation of the Unfair Claims Settlement Practices Act.
* Get to know any special commissions or emergency task force units and how they might help.
* Remember that a letter, formally written and expressed, can sometimes give you more power than you thought.
* Get several quotes from licensed contractors. Understand how you need those quotes broken down.