Hi. We live in MA. Have O&L coverage. Large house fire >50% repair requiring it to be built to current code. Town Board of Health reviewed plans of existing structure pre-loss and determined that based on MA Title 5 law, the room count exceeded the performance of the existing septic tank and required a 5 bedroom septic instead of a 4 bedroom and we would need to upgrade the septic system. One room was finished without a permit. This is immaterial to the insurance policy as it covers repairs of un-permitted work.
Insurance denied coverage as they claim septic system is another structure that did not sustain damage. We contend that Title 5 governs the construction of houses in MA, and you cannot do such without a compliant septic system. I’d also argue that the septic is not a “Structure”, it is a system as we will need to install a new trench in addition to the tank. The trench is definitely not a structure. There is no definition of a structure in the policy.
Who is in the right? Cannot find any case law as pertains directly to this.