The Ordinance and Law article in our last issue introduced the general subject; here are some practical matters. In our experience, the owner of a not-so-new building will likely experience one or more of the following three situations when applying for a permit to make repairs following a loss. An agent’s pre-loss efforts to secure best-available limits and coverages, as well as prepare the client for some of these anticipated bumps in the road can help the insurance buyer keep costs down and develop a set of reasonable expectations. The planning/permitting process can take as much or even more time than the construction itself, particularly in large and densely populated areas.
1. Abatement Delays
The client wants to get the building repaired quickly but Building Department officials are going to require testing for hazardous materials, first, before work of any kind can legally begin. Asbestos, for instance, was used in building materials up until the late 1980’s.
Damaged flooring, ceilings, and drywall (joint compound) are common areas that will require testing for asbestos before any permits will be issued for cleanup and repairs. Testing can be initiated very quickly, and results are nearly instantaneous, but if abatement is required it must be done under controlled circumstances that require a special permit from Air Quality Control officials – and that means a two-week delay, minimum.
2. Public accessibility, by today’s standards.
To get a permit and start repairs, building officials may require the property meet current accessibility standards the city would require of new ground-up construction.
Entry ramps, entry and exit door automation, parking area configuration and striping are often inadequate or lacking in older structures. Officials can extend those requirements to parts of the building not damaged in the loss, and the cost to comply might result in financial hardship for the client.
Property owners have the right to request exceptions due to financial hardship, and building officials have the authority to grant them. The client and their contractor should meet with building officials together to discuss alternatives.
3. Setback issues? Leave something standing. When the client or their contractor suspects there may be setback issues, clearing the site will guarantee it. Building officials are more inclined to work with the existing footprint, despite setbacks, when remnants of the building are still standing.
We know the first few days following the report of a loss sets the tone for the claim adjustment. Our first expectation? A seasoned adjuster, local to the region where the loss occurred, will make contact with both the client and the agent (phone call and email) within hours of the first report – and then visit the site as quickly as possible. That adjuster’s years of experience with local building officials can serve the interests of the policyholder, their contractor, the agent, and the insurer.
