What Are Building Codes?
Building codes, also known as building ordinances, are requirements determined by the state and local government that set requirements for building, remodeling, or restoring structures. They ensure that all new or repaired buildings are safe and structurally sound. Since building codes are set by local and state governments, they differ depending on location of the structure and are amended frequently. As a result, the cost to repair a damaged or destroyed structure up to code may be significantly increased.
What is Building Code Coverage?
Building Code Coverage is not a standard part of most homeowners policies and is offered as an endorsement. Like other endorsements, building code coverage is optional, and usually requires additional premiums. Homeowners insurance is written as either a Replacement Cost Value or Actual Cost Value basis (read more about that here), and will generally cover the cost of repairs to your damaged property. However, without building code coverage, you are responsible to pay any costs associated with bringing your home up to code.
An example we see often involves the flat surface attached to roof beams that adds an extra layer of protection between your room and the inside of your home, called decking. In some areas, building codes set requirements for the thickness of decking. A homeowner files a claim, the insurance company approves a roof repair, but during the repair contractors realize the decking is not up to code. Without building code coverage, the homeowner would be responsible for the cost of bringing the decking up to code. (FYI: The average cost to replace decking is about $5,000!)
If you have an older home, chances are your home does not comply with all current building codes. In the event of a loss, you may be financially responsible for bringing your home up to code. As a property owner, it is important you understand what your insurance policy covers, or does not cover, before a loss occurs. National Claims Negotiators is here to help property owners. We offer FREE Policy Reviews. If you need help understanding what your policy covers, call us today!
