Ordinance and Law. If any part of the Mortgaged Property is legal non-conforming under current building, zoning or land use laws or ordinances, then “Ordinance and Law Coverage” in the amount required by Lender.
Ordinance and Law. If the Mortgaged Property constitutes a legal non-conforming use, then “Ordinance and Law Coverage” in the amount required by Lender, including the follow endorsements:
Ordinance and Law. Required, to the extent available on commercially reasonable terms, if the Property is non-conforming or non-complying for: (A) diminution of value caused by the enforcement of current building codes and zoning laws (coverage A) in an amount not less than 100% of the full replacement cost of the improvements; (B) demolition and removal costs of the undamaged portions of the structure in an amount not less than 10% of the full replacement cost of the improvements (coverage B); and (C) the increased cost of repair or reconstruction in an amount not less than 25% of the full replacement cost of the improvement (coverage C).
Ordinance and Law. For policies with Ordinance and Law coverage, please refer to the specific policy provisions regarding the limit of liability. Ordinance and Law coverage must be enforced and increased costs incurred prior to payment, which should be shown in the Xactimate estimate utilizing the Paid When Incurred (PWI) feature. • Permits and Fees - Permits and fees should be paid based on actual costs documented by the repair contractor or estimated based on the municipal jurisdiction building code requirements. If such charges appear excessive, they should be supported via on-line local city/county websites or the local building code enforcement office. • Paid When Incurred (PWI) – When it is determined that the items are payable when incurred, utilize the Xactimate’s Paid When Incurred feature (See Xactimate Paid When Incurred (PWI) Feature Job Aid). PWI may be paid, but is not limited to the following circumstances: o Receipt of a signed repair contract o Receipts invoices, photographs, and/or documentation received confirming repair or replacement has been completed Note: Depreciation should not be applied to PWI items. • Sub-bids – Factoring sub-bids as a single line-item entry is prohibited if Xactimate line-items are available in the software tool. o If the specialty trade on a sub-bid cannot be broken out by Xactimate line-item entry, the adjuster should ensure that: ▪ The corresponding trade Category, i.e., Plumbing and the Selector of BIDITM are utilized. ▪ The sub-bid is itemized for material and labor and not factored as a lump sum. ▪ Any O&P and/or sales tax reflected in the sub-bid are not duplicated by the software calculations. ▪ The use of the sub-bid is supported with an Xactimate note. ▪ The sub-bid is uploaded into XactAnalysis documents. NEGOTIATION AND SETTLEMENT • Attempt to reach an agreed ‘scope and damage’ estimate with the insured or their representative(s). o If an agreed scope cannot be obtained, the adjuster should issue payment of the undisputed covered damages determined at the inspection. • Appropriate steps to conclude the loss should be facilitated and documented with rationale in the file notes. This may include: o Acknowledging relevant correspondence associated with coverage or damages o Negotiation upon receipt of estimates, invoices, receipts, or other documentation from the insured or their representative(s) • Protect the interests of lienholders, mortgagees, additional insured(s), insured’s representatives and AOB parties. o Co...
