This discussion is about ordinance or law coverage and how to insure for this potential exposure. After a disaster causes property damage or loss many policyholders discover that rebuilding the structure to conform to the latest building codes can add 50% or more to their recovery cost. Then comes the unpleasant surprise of discovering the ordinance or law exclusion that prevents a full recovery. With building codes, such as sprinkler systems and handicap accessibility, frequently changing, it is important to understand what your insurance excludes and how to acquire adequate coverage.
Key Takeaways:
[1:47] What is the ordinance or law exclusion?
[3:59] What are the three distinct areas of uninsured losses under the ordinance or law exclusion?
[10:00] How to determine if the exclusion will apply and what its probable expense will be on the loss adjustment?
[12:59] How can policyholders protect themselves from the ordinance or law exclusion?
[18:26] What types of coverages are available for policyholders to counteract the ordinance or law exclusion?
[24:31] Is it true that once the need for ordinance or law coverage is established policyholders must ask how much of each coverage is needed?
[27:41] Are there any circumstances in which the building ordinance or law coverage would not apply?
[30:38] Who can the insured reach out to for questions and insurance concerns regarding ordinance or law coverage?
[32:00] How does the ordinance and law exclusion affect business income and extra expense coverage?
[34:48] What role could ordinance and law play when a building has contiguous walls to another structure?
Panelists:
● C. Todd Thomas, Executive Director at Adjusters International and Member of the Society of Risk Management Consultants
● Jim Mahurin, Risk Management Consultant and Member of the Society of Risk Management Consultants
● John Marini, President, and CEO at Adjusters International
● Luis Esteves, Principal, and Executive General Adjuster at Jansen/Adjusters International
Moderator:
● Marjorie Musick, Social Media Specialist at Adjusters International/Basloe, Levin & Cuccaro, and Jansen/Adjusters International
Mentioned in This Episode:
For further information on this topic, please read our Adjusting Today® article: "Ordinance or Law Coverage: Code for Recovery!"
Today, we will be discussing how experts can benefit policyholders prove an insured loss. More and more insurance companies are using experts to support their side of a claim settlement. That is why today’s policyholder must often take advantage of similar professional resources to help prepare, support, and settle their claims. Understanding and utilizing the coverages available for this purpose can help protect the insured not only against financial loss but for the cost of recovering it. Our experts will review the basics of loss preparation cost coverage including what it is, why it’s needed, and how to ensure you have purchased the right type and the amount of coverage.
Key Takeaways:
[1:58] Why is it important to know who is who in the insurance claims process?
[2:58] What types of professionals who may participate in a policyholder’s property loss work for an insurance company?
[3:25] What types of professionals work for the policyholder?
[3:57] Are there any professionals who may work for both the insurance company and the policyholder?
[4:33] How can qualified outside professionals make a significant difference in the amount of a settlement and the speed at which it’s reached?
[5:21] What types of experts and professionals will insureds possibly need to hire during the property insurance claim process?
[5:57] Historically the cost of the experts to support and prepare a claim are the insured’s responsibility, but now it seems the burden of cost seems to be shifting. Why is that?
[6:54] How does current coverage to reimburse policyholders for loss preparation costs vary among insurance carriers?
[7:20] What steps should policyholders take when considering this type of coverage?
[8:11] What other types of questions should policyholders consider when they are researching loss adjustment expense coverage?
[9:43] Why is it important that a policyholder identify the carrier’s precise intent for loss preparation coverage before a loss occurs?
[10:30] What should policyholders do if they haven’t found an acceptable endorsement that will respond to their business's unique needs?
[11:14] Why do so many organizations fail to make sure their insurance program includes reimbursement coverage?
[13:07] Examples of businesses who want people to maximize their financial settlement after a disaster because they didn’t have this type of coverage or they didn’t hire the right experts.
[15:00] If an agent or broker offers to handle a claim is that an unauthorized practice of public adjusting or are they legally allowed to do it?
[16:42] Other important points about making a case for experts.
[18:12] Why is coverage for public adjusters rarely seen?
Panelists:
● C. Todd Thomas, Executive Director at Adjusters International and Member of the Society of Risk Management Consultants
● Jim Beneke, SPPA, President at The Beneke Co./Adjusters International
● John Marini, Senior Advisor for Business Development & Government Affairs at Adjusters International
Moderator:
● Marjorie Musick
Mentioned in This Episode: