After the fire, the insured recovered their initial payment for the loss of the grandstand. However, as the wood bleachers, press box and observation tower were built by local farmers on an un-engineered raised concrete foundation, the original construction could not be rebuilt under current code. Biggs High School engaged The Greenspan Co./Adjusters International to address the issue of recovering code upgrades to the seasoned, traditional structure.

The carrier held a firm position that the insured was only entitled to rebuild an identical building and constructing additional bathrooms or different bleachers was beyond their policy. Should the school rebuild as they were, they would be in direct violation of ADA regulations. The carrier had initially reserved $300,000 for this loss and, based on proration of the entire project, had offered $500,000. TGC/AI supported their position and the final settlement was $1,900,000 in code upgrade costs, in addition to the initial settlement the insured had received for the existing bleachers. Click here to read more.