“Law or Regulation” – Code Upgrade Coverage for Georgia Single Family Homes – Compliance

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Following covered damage to a Georgia home, the property being repaired and/or remodeled may need to be “upgraded” to comply with current local building codes. For example, a homeowner may be notified (typically by their contractor or engineer) that a new item required by the code that did not exist prior to the loss needs to be installed, or that an item that is not code compliant by a needs to be installed Code-compliant articles are replaced. You may be told that such items must be installed in areas damaged by the loss, in undamaged areas, or both.

While standard insurance policies typically do not provide coverage for the increased costs associated with such “upgrades,” a homeowner can apply for compensation under a building code upgrade (a/k/a statute or regulation) if this is stated in their policy . The application of such certification depends on what building codes have been passed and are being enforced in the municipality or county where the dwelling is located. The purpose of this article is to serve as a crash course in determining what building codes and standards apply to an insured property so that the application of “Code Upgrade” coverage can be properly evaluated.

First, it is necessary to determine what building codes have been passed in the county and municipality where the property is located, and then to determine which of those codes are disallowed or allowed (i.e., enforced or unenforced). The state of Georgia has adopted state minimum standard building codes, including the International Building Code and the International Residential Code for One- and Two-Family Dwellings (“IRC”), which have statewide applicability, whether expressly adopted by a municipality or a county in Georgia. In general, the IRC, which applies to the construction, alteration, replacement and repair of existing detached single family homes, two family homes and townhouses, applies to most homeowner claims and is universally enforced in Georgia at the local level.

However, in addition to enforcing state Minimum Standard Codes, each Georgia municipality or county may also enact and enforce building codes that do not automatically apply statewide, such as: B. the International Existing Building Code. Local governments may also change state minimum standard codes (e.g. IRC) provided such changes are no less stringent than those specified in the standard codes and are based on local climatic, geological, topographical or public safety factors. In other words, local governments can change and tighten the standard codes (e.g. IRC) to suit their specific needs.

It is therefore critical for an insurer evaluating whether code upgrade coverage exists to begin by determining not only what standard building codes are enforced by the local government in which the property is located, but also whether the regulations have been changed by the local government. A homeowner’s claim for damage to an apartment will likely result in a determination of whether the county or municipality has amended the International Housing Code. Georgian law requires the Ministry of Community Affairs to keep a file of all amendments to the State Minimum Standard Codes adopted by the state’s various municipalities and counties, with such information being made available to the public upon request.

Once the applicable building code has been identified, one must then determine which part of the code applies to the loss. For example, Schedule J “Existing Buildings and Structures” of the Housing Code governs the repair, renovation, alteration, and reconstruction of existing detached single- and two-family homes and townhouses and should apply to most claims to dwellings in counties or localities that have not changed the minimum standard regulations or building codes adopted and enforced, which do not automatically apply nationwide.

Once the applicable section of the building code is determined, an assessment must be made of how the section of the building code classifies the work being carried out in the dwelling, as each classification may have different requirements from the regulations. For example, for the purposes of Annex J of the IRC, works in existing buildings are grouped into the categories ‘repair’, ‘refurbishment’, ‘modification’ and ‘remodeling’. The specific code requirements for each category or work are set out in Appendix J of IRC, with repairs being the least stringent category and rebuilding being the most stringent category.

Pretty straight forward, right? But what happens if only part of the existing apartment is damaged? Does the International Housing Code require all non-damaged parts of the dwelling or building that require code upgrades to be code upgraded? For example, would IRC require an entire obsolete deck to be code upgraded if only part of the deck was damaged during a covered loss (possibly triggering code upgrade coverage)?

IRC’s Appendix J “Notes to Users” provides some guidance on this issue, stating that Appendix J “is intended to encourage and ensure the continued safe use of existing buildings new job
corresponds to the intent of the code and that Existing Conditions remain at their current level of compliance or be improved.” (emphasis added). The appendix goes on to state that the “purpose of these regulations is to encourage the continued use or re-use of lawfully existing buildings and structures” (ie buildings conforming to the regulations in force at the time of original construction).

The intent of the IRC’s provisions relating to existing buildings is supported by Georgian law, in particular the Georgian Uniform Act for the Application of Building and Fire Related Codes to Existing Buildings (“Uniform Act on Existing Buildings”). The Uniform Act on Existing Buildings provides that a local building enforcement agency may permit the repair of existing buildings without full compliance with state or local rules, regulations or codes for new construction subject to the following conditions: (1) any life-threatening conditions to a reasonable and realistic level Getting corrected; (2) the existing building becomes the minimum performance standard; and (3) the building’s compliance level after changes must not be lower than before the changes.

Thus, an existing structure can be repaired without bringing the entire structure into compliance with code requirements for new construction, so long as the existing structure (i.e., the portion of the structure not being repaired) meets the code requirements at that time Structure was originally built. In addition, the Uniform Act on Existing Buildings provides that “changes or repairs to an existing building or structure which do not affect the performance of the building may be made using similar materials”.

A final thought for evaluating code upgrade coverage is to consult with the local building inspectors or other experts early and often in the damage process to determine what code upgrades are needed to repair only the damaged portion of the property. A homeowner or public adjuster may apply for coverage for code upgrades that were required prior to a covered loss and/or are unrelated to the resulting loss, and consulting with an expert is helpful in identifying uncovered upgrades from covered upgrades to distinguish.

The content of this article is intended to provide a general guide to the topic. Professional advice should be sought in relation to your specific circumstances.