Do building codes influence roof insurance claims costs?

by Nils Deacon, Manager, Inspections and Rating Services

Building‑code alignment has become a central factor in both legitimate replacement costs and fraudulent claim inflation. The International Code Council (ICC) continues to update the International Residential Code (IRC) and International Building Code (IBC) with roofing provisions related to wind resistance, underlayment, fastening schedules, and reroofing requirements. Fastening schedules are standardized requirements for the type, size, and spacing of fasteners required to secure roofing components to a building’s structural frame. IRC

These updates influence ordinance and law triggers and replacement scope, especially in jurisdictions that adopt newer code cycles. Ordinance and law triggers occur when a covered loss produces a legal code-based requirement to upgrade, alter, or replace even undamaged parts of the roof. Updated codes could also call for enhanced wind resistance, ice-barrier underlayment, or fire rated assemblies in wildfire zones. claimsjournal These requirements usually increase the cost of the claim.

Fraudulent contractors often exploit homeowner unfamiliarity with these provisions by misrepresenting code requirements or claiming that full replacement is mandated when only partial repair is warranted depending on the municipality.

Insurers have responded with higher premiums and stricter underwriting rules.

Factors discussed in current Underwriters’ Corner articles create a feedback loop: more storms → more contractor activity → more questionable claims → higher costs → stricter policy terms. claimsjournal

DISCLAIMER: This information reflects the interpretation of MSO, Inc. with regard to NFPA Standards and Codes and other code sources. It does not represent these codes’ official position on the items discussed.