We lost our home in the Marshall fire and have chosen to purchase a new build in a new development rather than rebuilding on our lot in Louisville. Our insurer has paid coverage A 100% and also the additional 25% home protector, however they have denied our claim for Ordinance and Law stating that it does not apply if we are building elsewhere. I have argued that we are making a claim for our lost home and not our new home. I also brought up CDI emergency regulation 22-E-15 which they also are saying does not apply. Is the insurance company correct in denying this or should I push forward and escalate the claim and what would my options be in that case?
I’m sorry to hear that you’re going through the difficulty of having your insurance company refuse to honor your ordinance and law coverage on the new lot. I would recommend that you consult with an attorney to get information on how your policy applies when you build elsewhere. You should be able to at least get a free consultation – there are many attorneys in Colorado who want to help Marshall Fire victims.
Whether you have recourse for your insurance company’s denial will depend on the terms of your policy. You might be able to have your insurance company honor your O&L coverage by showing that you are rebuilding exactly what you had on the burned lot, and that the local codes that apply require additional costs of construction commensurate with what you would incur if you were rebuilding on the lot that burned in the fire. C.R.S. 10-4-110.8 was amended by HB 22-1111 to require this. This is a new law that does not technically apply to the Marshall fire claims, but perhaps your carrier will honor that here in light of your challenging circumstances.
Again, I recommend that you talk with an attorney and have them review your policy to evaluate your options. Another resource could be the Colorado Division of Insurance. You can submit a complaint about this denial electronically and a Division of Insurance staff member will help you to get to the bottom of this.
I sincerely wish you all the best,