Building Ordinance and the “Time of Loss” Language
Buildings and structures must be built to comply with the building codes in affect at the time the building will be rebuilt.
Did You Know: Building ordinance language in Commercial Property forms or endorsements state that increased costs of construction will be paid for building ordinances in effect AND enforced at the time of loss.
Did You Know: That the pre-construction process can be very time-consuming specifically in the area of obtaining building permits. Prior to the actual reconstruction building ordinances that were in effect at the time of loss very often change to new ordinances in laws. This is specifically true following a loss involving multiple units. In that the policy language pays for code changes in affect at the time of loss, the policy will not pay for any changes or increases in codes put in force after the time of loss.
Laurie Infantino, AFIS, CISC, CIC, CRIS, ACSR, CISR
Insurance Skills Center
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