Home Insurance: Validity of an Errors and Omissions Claim Re Code Upgrade Coverage

jeudi 8 janvier 2015

My question involves insurance law for the state of: Georgia

We lost our home in February 2014 to a house fire. We had enough coverage on the structure itself and the contents. However, it was a 1973 house and we did not have Code Upgrade Coverage. We're in the Atlanta area and the requirement here is that if 40% or more of a structure is rebuilt, 100% must be brought up to current code. Because of this, our out-of-pocket expense is several thousand dollars. The contractor estimates "well over $15k" but acknowledged he'd need to spend some time with each subcontractor to get a more precise number if we pursued anything legally. Code upgrades affect every aspect of our rebuild: HVAC, electrical, plumbing, doors and windows. My question is regarding Errors and Omissions. We bought this house in 2012 and revisited our coverage before the sale. We asked for guidance on whatever we needed for the worst-case scenario, then we added more to both the structure and the contents just to be safe. At no time was Code Upgrade Coverage ever suggested. We are extended warranty-type people and would've added it. Immediately after the fire, we called our agent (who was out of the office and has never returned a call post-fire) and spoke to her second-in-charge. He told us we didn't need Code Upgrade Coverage on a 1973 home because "not much had changed" and that only homes built before 1940 needed that coverage. What, if any, legal recourse do we have?





Home Insurance: Validity of an Errors and Omissions Claim Re Code Upgrade Coverage

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