Insurance building ordinance and law Scott MacLaughlin asked 4 months ago
Insurance building ordinance and law

My home burned in the Marshall Wildland Fire. We have USAA insurance. The City of Louisville is allowing us to opt out of the 2021 IECC building code and downgrade to the 2018 IECC standard. My question is whether the insurance companies will pay building ordinance and law insurance to the 2021 building code, or will they only pay to the 2018 building code? Thanks.

1 Answers
Amy Bach Amy Bach Staff answered 4 months ago

Both towns contacted UP about this in the spring and we suggested that they keep the codes mandatory to prevent insurers from arguing that they don’t have to cover the costs for those who want their rebuilds to meet the new code, but allow those do can’t/don’t want to include the 2021 upgrades in their rebuild to opt out.

We also conveyed that suggestion to the DOI, and they issued a draft bulletin and asked for comments: https://content.govdelivery.com/accounts/CODORA/bulletins/30328a8

UP submitted these comments supporting the bulletin with suggested edits: https://uphelp.org/wp-content/uploads/2022/08/Colorado-Bulletin-22-E-XX-United-Policyholders-Letter-of-Strong-Support.pdf

If you request an opt-out from the 2021 code, your insurer will not cover the upgrade cost. If you don’t request an opt-out, they should.