Evaluating Loss with a Business Ordinance or Law Exclusion

After a severe commercial property loss, one of the worst things that a business owner find out is that they have to rebuild their damaged structure to conform to new building codes. As a result, business owners might find themselves faced with costs that are out of their budget. Licensed public adjusters in South Florida are aware that even if the insurance company does give a substantial settlement, if it factors in certain construction parameters outlined in the Ordinance or Law Exclusion, reconstruction that complies with current building codes can add a significant amount to the cost of repairs.

Coconut Creek public adjusters don’t want to see your business suffer from not having the funds to repair your establishment, so the licensed public adjusters at Advocate Claims recommend that you check the “Ordinance or Law” exclusion in your property insurance policy, as this may prevent a full recovery.

The Ordinance or Law Exclusion states that the insurer does not have to pay for loss or damage caused by regulating construction, in regards to repairs that are due to code requirements and/or removing undamaged materials during reconstruction.

In order to evaluate loss with a business ordinance or law coverage, Advocate Claims Public Adjusters recommend that you go over the three distinct and separate areas of uninsured loss outlined in the Ordinance or Law Exclusion. This way, you are aware of exactly how it may apply to your commercial property loss and repairs.

1. Your public adjuster can help you evaluate the loss of the value of the undamaged portion of a building when the building has to be torn down in order to meet certain code requirements. When the commercial property damage percent exceeds what it specified in the code, or when reconstruction is not permitted under the code, you may see a lapse in coverage.
2. Not covered is the cost of demolition and the removal of debris from undamaged portions of your commercial property. Note that this only applies to the cost for demolition and removal of undamaged portions, not damaged portions.
3. Also not covered is the costs of reconstruction increase due to code requirements, such as sprinklers, fire protection, or anything that is a code requirement that was left out of your old building, these additional fees are not covered.

Since certain homeowner’s insurance policies may also have the same restrictions, the public adjusters at Advocate Claims can provide guidance and insight into your homeowner’s insurance and/or commercial property insurance fine print and details. This way, you can know exactly what you can and cannot receive insurance settlement funds for.