2021 - 2022 LEGISLATURE
August 4, 2021 - Introduced by Representatives Magnafici, Doyle, Drake,
Duchow, B. Meyers, Murphy, Novak, Petersen, Schraa, Steffen, Stubbs,
Tauchen, Tittl, Vruwink and Loudenbeck, cosponsored by Senators
Stafsholt, L. Taylor, Ballweg, Bewley, Jagler, Nass and Stroebel. Referred
to Committee on Insurance.
AB483,1,3 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 30 days after real property has
incurred damage, an insurer may provide certification to a municipality that the
insurer reasonably believes the real property may qualify as an insured dwelling and
that a claim has been filed and the insurer reasonably believes the claim may qualify
as covered damage. 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 also 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.
For further information see the local fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB483,1 1Section 1. 66.0413 (1) (b) 1. of the statutes is amended to read:
AB483,2,72 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.
AB483,2 8Section 2. 66.0413 (1) (c) of the statutes is amended to read:
AB483,3,29 66.0413 (1) (c) Reasonableness of repair; presumption. Except as provided in
10sub. subs. (3) and (5), if a municipal governing body, building inspector, or designated
11officer determines that the cost of repairs of a building described in par. (b) 1. would
12exceed 50 percent of the assessed value of the building divided by the ratio of the
13assessed value to the recommended value as last published by the department of

1revenue for the municipality within which the building is located, the repairs are
2presumed unreasonable for purposes of par. (b) 1.
AB483,3 3Section 3. 66.0413 (5) of the statutes is created to read:
AB483,3,54 66.0413 (5) Razing certain insured dwellings. (a) Definitions. In this
5subsection:
AB483,3,86 1. “Cost of repairs” includes the estimated cost of repairs that are necessary to
7comply with applicable building codes, or other ordinances or regulations, governing
8the repair or renovation of a dwelling.
AB483,3,99 2. “Covered damage” means damage that is covered by an insurance policy.
AB483,3,1110 3. “Insured dwelling” means real property that is covered under an insurance
11policy and that is owned, occupied, and used primarily as a dwelling by the insured.
AB483,3,1512 (b) Insurer certification. 1. No later than 30 days after real property has
13incurred damage, an insurer may provide a certification to a governing body,
14building inspector, or other designated officer of a municipality stating all of the
15following:
AB483,3,1716 a. That the insurer reasonably believes the real property may qualify as an
17insured dwelling.
AB483,3,2018 b. That the property owner or an insured has filed a claim for covered damage
19with the insurer and the insurer reasonably believes the claim may qualify as
20covered damage.
AB483,3,2221 2. A certification under this paragraph does not waive or limit any rights of the
22insurer under an insurance policy.
AB483,4,223 (c) Municipal assessment. A governing body, building inspector, or other
24designated officer of a municipality may not issue a raze order under sub. (1) (b) for
25an insured dwelling for which an insurer has provided a certification under par. (b)

1unless the governing body, building inspector, or other designated officer does all of
2the following:
AB483,4,83 1. Provides notice of intent to issue a raze order to the owner of record of the
4insured dwelling, the holder of any encumbrance on the insured dwelling, and the
5insurer of the insured dwelling. The notice shall include a statement that materials
6may be submitted to the governing body, building inspector, or other designated
7officer under subd. 2. Notice under this subdivision shall be served in the manner
8provided under sub. (1) (d).
AB483,4,149 2. Accepts and considers materials that are submitted by any person entitled
10to notice under subd. 1., that assist in establishing the extent of the damage or the
11reasonable cost of repairs to the insured dwelling, and that are received within 30
12days after provision of the notice under subd. 1. Materials that may be accepted and
13considered under this subdivision are limited to damage estimates, evaluations of
14the cost of repairs, and the results of inspections of the property.
AB483,4,1615 3. Conducts an on-site inspection of the insured dwelling to assess the extent
16of the damage.
AB483,4,1717 4. Determines the estimated cost of repairs for the insured dwelling.
AB483,4,1818 5. Determines that repair of the insured dwelling is not reasonable.
AB483,4,2319 (d) Cost of repair. A municipal governing body, building inspector, or other
20designated officer of a municipality shall base its determination of the estimated cost
21of repairs for the insured dwelling under par. (c) 4. on the materials accepted under
22par. (c) 2. and similar materials produced by the municipal governing body, building
23inspector, or designated officer.
AB483,5,224 (e) Reasonableness of repair. If a municipal governing body, building inspector,
25or other designated officer of a municipality determines that the estimated cost of

1repairs of an insured dwelling does not exceed 70 percent of the insurance policy
2limits of the insured dwelling, the repairs are presumed reasonable.
AB483,4 3Section 4 . Initial applicability.
AB483,5,54 (1) This act first applies to real property that incurs damage on the effective
5date of this subsection.
AB483,5,66 (End)
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