SENATE SUBSTITUTE AMENDMENT 1,
TO SENATE BILL 434
September 2, 2021 - Offered by Senator Stafsholt.
SB434-SSA1,1,3 1An Act to amend 66.0413 (1) (b) 1. and 66.0413 (1) (c); and to create 66.0413
2(5) of the statutes; relating to: municipal raze orders for certain insured
3dwellings.
Analysis by the Legislative Reference Bureau
This bill limits the authority of a municipality to order the razing of certain
insured dwellings.
Under current law, a municipality may issue an order to raze a building that
is unfit for human habitation and unreasonable to repair. Current law specifies that
if the municipality determines that the cost of repairs of a building would exceed 50
percent of the adjusted assessed value of the building, the repairs are presumed
unreasonable. A raze order is issued to the building's owner and, if the owner does
not comply with the order within the prescribed time, the municipality may raze the
building. The cost of razing may be charged against the real estate upon which the
building is located.
The bill limits the authority of a municipality to issue a raze order for an
insured dwelling that has incurred damage that is covered under the insurance
policy (covered damage). Under the bill, no later than 14 days after real property has
incurred damage, an insurer may provide a written certification through 1st class
mail or electronic communication to the municipality that 1) the insurer reasonably
believes the real property may qualify as an insured dwelling, 2) a claim has been

or is anticipated to be filed, and 3) the insurer reasonably believes the claim may
qualify as covered damage. The certification must also include the date of damage
to the insured dwelling; the insurance policy limits of the insured dwelling; the
insurer's designated representative for the filed or anticipated claim; and the
designated representative's mailing address, e-mail address, and phone number.
The bill provides that if a municipality receives such a certification, it may not
issue a raze order unless the municipality does all of the following:
1. Provides notice of intent to issue a raze order to the owner of record of the
dwelling, the holder of any encumbrance on the dwelling, and the insurer of the
dwelling.
2. Accepts and considers certain materials submitted to it that assist in
establishing the extent of the damage or the reasonable cost of repairs to the
dwelling.
3. Conducts an on-site inspection of the dwelling to assess the extent of covered
damage.
4. Determines the estimated cost of repairs for the dwelling.
5. Determines that repair of the dwelling is not reasonable.
The bill specifies that, for an insured dwelling, if the municipality determines
that the estimated cost of repairs of the dwelling does not exceed 70 percent of the
insurance policy limits of the dwelling, the repairs are presumed reasonable. The bill
further specifies that a municipality is not precluded from issuing a repair order to
the owner of an insured dwelling. The bill also provides that the requirements of the
bill do not apply to 1) a dwelling that the municipality has determined to be in
imminent danger of structural collapse and for which the property owner has failed
to appropriately secure and limit access, or 2) an insured dwelling that is the subject
of a notification provided to the municipality that the insurer has determined the
insured dwelling to be wholly destroyed.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB434-SSA1,1 1Section 1 . 66.0413 (1) (b) 1. of the statutes is amended to read:
SB434-SSA1,2,72 66.0413 (1) (b) 1. If Except as provided in sub. (5), if a building is old,
3dilapidated, or out of repair and consequently dangerous, unsafe, unsanitary, or
4otherwise unfit for human habitation and unreasonable to repair, order the owner
5of the building to raze the building or, if the building can be made safe by reasonable
6repairs, order the owner to either make the building safe and sanitary or to raze the
7building, at the owner's option.
SB434-SSA1,2
1Section 2. 66.0413 (1) (c) of the statutes is amended to read:
SB434-SSA1,3,82 66.0413 (1) (c) Reasonableness of repair; presumption. Except as provided in
3sub. subs. (3) and (5), if a municipal governing body, building inspector, or designated
4officer determines that the cost of repairs of a building described in par. (b) 1. would
5exceed 50 percent of the assessed value of the building divided by the ratio of the
6assessed value to the recommended value as last published by the department of
7revenue for the municipality within which the building is located, the repairs are
8presumed unreasonable for purposes of par. (b) 1.
SB434-SSA1,3 9Section 3 . 66.0413 (5) of the statutes is created to read:
SB434-SSA1,3,1110 66.0413 (5) Razing certain insured dwellings. (a) Definitions. In this
11subsection:
SB434-SSA1,3,1412 1. “Cost of repairs” includes the estimated cost of repairs that are necessary to
13comply with applicable building codes, or other ordinances or regulations, governing
14the repair or renovation of a dwelling.
SB434-SSA1,3,1515 2. “Covered damage” means damage that is covered by an insurance policy.
SB434-SSA1,3,1716 3. “Insured dwelling” means real property that is covered under an insurance
17policy and that is owned, occupied, and used primarily as a dwelling by the insured.
SB434-SSA1,3,2118 (b) Insurer certification. 1. No later than 14 days after real property has
19incurred damage, an insurer may provide a written certification through 1st class
20mail or electronic communication to a governing body, building inspector, or other
21designated officer of a municipality stating all of the following:
SB434-SSA1,3,2322 a. That the insurer reasonably believes the real property may qualify as an
23insured dwelling.
SB434-SSA1,4,3
1b. That the property owner or an insured has filed a claim for covered damage
2with the insurer or the insurer has reason to believe the property owner or an insured
3will file a claim for covered damage with the insurer.
SB434-SSA1,4,54 c. That the insurer reasonably believes the claim may qualify as covered
5damage.
SB434-SSA1,4,96 d. The date of damage to the insured dwelling, the insurance policy limits of
7the insured dwelling, the insurer's designated representative for the filed or
8anticipated claim, and the designated representative's mailing address, electronic
9mail address, and phone number.
SB434-SSA1,4,1110 2. A certification under this paragraph does not waive or limit any rights of the
11insurer under an insurance policy.
SB434-SSA1,4,1712 3. At any point prior to submitting a certification under subd. 1., an insurer may
13notify a governing body, building inspector, or other designated officer of a
14municipality that the insurer has determined the insured dwelling to be wholly
15destroyed. If at any point after submitting a certification under subd. 1. the insurer
16determines that the insured dwelling is wholly destroyed, the insurer shall notify the
17governing body, building inspector, or other designated officer of that determination.
SB434-SSA1,4,2218 (c) Municipal assessment. A governing body, building inspector, or other
19designated officer of a municipality may not issue a raze order under sub. (1) (b) for
20an insured dwelling for which an insurer has provided a certification under par. (b)
21unless the governing body, building inspector, or other designated officer does all of
22the following:
SB434-SSA1,5,323 1. Provides notice of intent to issue a raze order to the owner of record of the
24insured dwelling, the holder of any encumbrance on the insured dwelling, and the
25insurer of the insured dwelling. The notice shall include a statement that materials

1may be submitted to the governing body, building inspector, or other designated
2officer under subd. 2. Notice under this subdivision shall be served in the manner
3provided under sub. (1) (d).
SB434-SSA1,5,124 2. Accepts and considers materials that are submitted by any person entitled
5to notice under subd. 1., that assist in establishing the extent of the damage or the
6reasonable cost of repairs to the insured dwelling, and that are received within 30
7days after provision of the notice under subd. 1. Materials that may be accepted and
8considered under this subdivision are limited to damage estimates, evaluations of
9the cost of repairs, and the results of inspections of the property. When considering
10the materials submitted under this subdivision, the governing body, building
11inspector, or other designated officer shall consider the qualifications, expertise, and
12experience of the person that submitted the materials.
SB434-SSA1,5,1413 3. Conducts an on-site inspection of the insured dwelling to assess the extent
14of the damage.
SB434-SSA1,5,1515 4. Determines the estimated cost of repairs for the insured dwelling.
SB434-SSA1,5,1616 5. Determines that repair of the insured dwelling is not reasonable.
SB434-SSA1,5,2117 (d) Cost of repair. A municipal governing body, building inspector, or other
18designated officer of a municipality shall base its determination of the estimated cost
19of repairs for the insured dwelling under par. (c) 4. on the materials accepted under
20par. (c) 2. and similar materials produced by the municipal governing body, building
21inspector, or designated officer.
SB434-SSA1,5,2522 (e) Reasonableness of repair. If a municipal governing body, building inspector,
23or other designated officer of a municipality determines that the estimated cost of
24repairs of an insured dwelling does not exceed 70 percent of the insurance policy
25limits of the insured dwelling, the repairs are presumed reasonable.
SB434-SSA1,6,4
1(f) Repair orders. Nothing in this subsection shall preclude the governing body,
2building inspector, or other designated officer of a municipality from ordering the
3owner of an insured dwelling to make the building safe and sanitary under sub. (1)
4(b).
SB434-SSA1,6,55 (g) Application. This subsection does not apply to any of the following:
SB434-SSA1,6,96 1. A dwelling that the governing body, building inspector, or other designated
7officer of a municipality has determined to be in imminent danger of structural
8collapse and for which the property owner has failed to appropriately secure and
9limit access.
SB434-SSA1,6,1210 2. An insured dwelling that is the subject of a notification provided to the
11governing body, building inspector, or other designated officer of a municipality by
12an insurer pursuant to par. (b) 3.
SB434-SSA1,4 13Section 4 . Initial applicability.
SB434-SSA1,6,1514 (1) This act first applies to real property that incurs damage on the effective
15date of this subsection.
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