Code upgrades mbmmitch asked 2 years ago
Code upgrades

A friend has been told that Colorado Law requires that insurance companies pay for code upgrades when figuring the rebuild cost for a destroyed house, and that this is true even if you have reached the maximum of your insurance limit without including the cost of these code upgrades. i.e. code upgrades are paid beyond the normal replacement costs by law and do not come out of the insured replacement costs if you are at limit on those. Is this true?

1 Answers
Tom Henderson Tom Henderson Expert answered 2 years ago

Colorado law requires that code upgrade coverage of at least 10% of the Dwelling limit be offered. If additional code upgrade coverage is purchased (at whatever percentage), that coverage is available IN ADDITION to the Dwelling limit coverage limit. However, once the Dwelling limit (and any extended replacement cost coverage) and any code upgrade (sometimes called “Ordinance & Law”) coverage limit are exhausted, there is no law in Colorado that automatically increases the code upgrade limit to meet code requirements.