Coverage Excluded For Ordinance or Law Under Homeowners Policy.

Plaintiffs’ homeowners policy reads: “We do not insure under any coverage for any loss which is caused by one or more of the items below, regardless of whether the event occurs suddenly or gradually, involves isolated or widespread damage, arises from natural or external forces, or occurs as a result of any combination of these:  a. Ordinance or Law, meaning enforcement of any ordinance or law regulating the construction, repair or demolition of a building or other structure.” In a home remodel project, before construction was finished, city building inspectors discovered the project did not conform to the city’s floodplain regulations, and ordered the property demolished. Plaintiffs made a claim on their homeowners’ insurance policy. Their insurance company denied the claim, asserting the demolition was not an accidental loss, and in any event the loss was excluded. The insurer successfully moved for summary judgment. The appellate court affirmed, noting: “This seems, unfortunately for the [plaintiffs], a rather clear example of the ‘law or ordinance exclusion.’” Reichert v. State Farm General Insurance Company  (Cal. App. Fourth Dist., Div. 3; January 24, 2013) 212 Cal.App.4th 1543.