Farm Bureau TN refusing to pay for code upgrade



I have 2 claims going with the Farm Bureau in Tennessee.

The 1st. claim had a very basic scope with shingles, steep slope and pipe jacks only listed. I requested for local code requirements to be met and to add Ice and water shield, and drip edge. I also requested line item allowance for Starter &Ridgecaps.
I was told the starter & ridge caps are included in the shingle waste of 15%. 15% was added to the tear off squares, although there was no mention of ridge or starter with the shingles in the scope.
As for the Drip Edge and Ice&Water shield. I was told its not in their policy to cover those.
This was the response I received from the adjuster. With the 2nd paragraph highlighted.

Under SECTION I , we do not cover any loss resulting directly or indirectly from any of the excluded events listed below. We do not cover such loss for anyone regardless of: (a) the cause of the excluded event; or (b) other causes of the loss; or © whether other causes acted concurrently or in any sequence with the excluded event to produce the loss.

  1. Enforcement of an ordinance, code, or law regulating the construction, repair, renovation, or demolition of a building or other structure, except loss caused by actions of civil authorities to prevent the spread of a fire caused by a loss we insure against.

The 2nd scope had all the ridge caps and ice and water shield line item listed separately. The shingles were also listed with a 15% waste in addition to the ridge and water shield.

Both adjusters told me they would not cover and code upgrades. 1 adjuster included the ridge the other told me “it’s in the waste”. I’ve never had another insurance company refuse to pay for the minimum code requirements for the state.

How should I proceed with this? Please help.



Ordinance and Law is a endorsement that the homeowner pays extra for. Not all policies automatically have it include. It also appears that one of the roofs has the high profile type cap and the other does not. Also, the code has to be enforce for the coverage to apply. With all that being said I disagree with there waste calculation. Authentic Dad has a waste calculation program that I use with great effect. The cost of it is minimal and it pays for itself over and over again quite easily. I would also get the homeowner involved since that is who the insurance company has a contract with. Good Luck



First thing to do is look at the policy itself to see what it says about O&L. Even if O&L is excluded, there is an argument that O&L is actually part of a policy to cover Code items that exceed total policy value. In other words, if it is a RCV policy, an indemnification policy, they owe for those items to indemnify the policy holder. Will probably require appraisal or a PA to make that one stick.

Most Allstate policies do not have O&L. A lot of smaller insurance companies do not include it. I’m guessing there are numerous other items you may have not thought to supplement for. I’d have to see everything to know if this is the case or not. Your other option is a PA or Appraisal but neither option makes sense for a few hundred dollars.



Code Upgrade is included in all policies for may carriers: USAA, Travelers, etc. However it is excluded on all policies of other carries: American Summit. Many other companies “offer” it, or in other words exclude it unless it is requested at a premium. If the endorsement is not listed you simply need to charge the homeowner.

As for starter hip and ridge, I have also run into this. I politely ask for a copy fo the eagle view to ensure accurate materials are ordered. Then I add the missing line items from their estimate. When they state its is included in the waste I inform them that the eagle view, which THEY SENT ME, states that the waste variables do not include starter, hip, and ridge. Gets them most of the time, however I think State Farm paid EV off because theirs do not say this anymore. You could simply order your own and submit it as 3rd party evidence.



I realize some adjusters are dumb enough to fall for the EV argument. All EV is doing is providing the multiplication for different waste percentages. It in no way calculates the real waste. There are cases where 10% plus cap and starter may not be enough.

If you’re going to attempt to supplement for things, I think it best if you do it with facts, not smoke & mirrors.