While people were still being pulled from the wreckage of collapsed buildings caused by the tornado which hammered Oklahoma in May 2013, a discussion commenced about whether the public schools in Oklahoma should be required to have underground shelters. The estimated cost of such shelters was approximated at $1,000,000. Who is going to pay $1,000,000? The insurance companies? The town or county that owns the school? The taxpayers?
Insurance is intended to put you back in the position you were in prior to the loss. If you did not have a tornado shelter before the loss, a standard property insurance policy will not pay for something you did not have. Closer to home, if you have a kitchen fire in your house which is significant enough to warrant a complete gutting of the kitchen. Your contractor pulls a building permit. The building inspector comes and notes that you have aluminum wiring in an unaffected portion of the house. The current code forbids aluminum wiring: you will not get a certificate of occupancy until the undamaged aluminum wiring has been torn out and replaced. Your insurance company says:” we pay up to 10% of the policy limit for code upgrade coverage”. Would 10% be enough to make your house entirely code compliant?
We want to talk with you about this issue and make sure that you are properly covered. If your house was built in the last 10 years or if you have updated your house in the last 10 years, then your house is much closer to code compliance than a 60-year-old house. If the building codes have changed in your town recently or if they have not changed in 3 decades, it will affect how much code upgrade coverage you should have.
Call us, that’s why we are here. To discuss these things before something happens and to make sure that you have the proper type and limit of coverage.