Ordinance or Law Coverage: Code for Recovery!



Adjusters International Disaster Recovery Consulting

Ordinance or Law Coverage: Code for Recovery!

By Paul O. Dudey, CPCU
Contributing: Donald S. Malecki, CPCU

After a severe property loss, the first shock comes in learning that rebuilding a damaged or destroyed structure so that it conforms to the latest building codes can add 50 percent or more to recovery costs.

Then comes the unpleasant surprise of discovering that the “Ordinance or Law” exclusion in the property insurance policy will prevent a full recovery—even though replacement cost coverage is provided, limits are sufficient to fully cover the replacement, and no coinsurance or similar limitations are applicable.

With building codes continually changing—requiring features like new or improved sprinkler systems, better wiring and...


More Firsts for Adjusting Today!

Those who have followed Adjusting Today since its inception know that we have regularly sought the input of our readers in covering topics that address their needs and interests. Many of the articles we have featured have been the result of comments and suggestions received.

We’re pleased to note that the subject addressed in this issue was the direct result of reader requests. Ordinance or Law Coverage is a subject about which relatively little has been written. Yet it is a very real and timely concern for today’s insurance professional— whether involved at the agent/broker level, as an insured or risk manager, or in the claims settlement process.

This issue also includes another first, as we’re pleased to welcome distinguished insurance writers Paul O. Dudey, CPCU and Donald S. Malecki, CPCU to our editorial board.

We hope you’ll find this issue interesting and helpful!

— Sheila E. Salvatore, Editor