SF 1027

as introduced - 89th Legislature (2015 - 2016) Posted on 02/24/2015 09:35am

A bill for an act
relating to insurance; requiring certain disclosures with respect to building code
coverage in homeowner's insurance; amending Minnesota Statutes 2014, section
65A.10, subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2014, section 65A.10, subdivision 1, is amended to read:

Subdivision 1.

Buildings.

new text begin (a) new text end Nothing contained in sections 65A.08 and 65A.09 shall
be construed to preclude insurance against the cost, in excess of actual cash value at the
time any loss or damage occurs, of actually repairing, rebuilding or replacing the insured
property. Subject to any applicable policy limits, where an insurer offers replacement cost
insurance: (i) the insurance must cover the cost of replacing, rebuilding, or repairing any
loss or damaged property in accordance with the minimum code as required by state or
local authorities; and (ii) the insurance coverage may not be conditioned on replacing or
rebuilding the damaged property at its original location on the owner's property if the
structure must be relocated because of zoning or land use regulations of state or local
government. In the case of a partial loss, unless more extensive coverage is otherwise
specified in the policy, this coverage applies only to the damaged portion of the property.

new text begin (b) If the coverage referenced in paragraph (a), clause (i), is subject to any policy
limit other than the overall limit on the policy the insurer must annually provide the
following written notice in 18-point type:
new text end

new text begin "Limitation on Building Code Coverage:
new text end

new text begin This policy may not cover all cost related to replacing or repairing property in
accordance with minimum building code requirements because of an applicable
policy sublimit. If you have any questions about this, please contact your insurance
agent or us."
new text end