Did you know? Building Laws & Ordinances
Like many policyholders, you may have some questions about what each coverage even means… and then asking, do I really need that? We get it, the wording can be confusing! That’s why we are doing a series of blogs to try to help breakdown the coverages in easier to understand terms.
Today, we’ll tackle Building Laws & Ordinances coverage. This coverage is usually added by endorsement (addition to standard provisions) and covers you up to a specified limit for losses that require you to rebuild/repair to meet new city codes that may have changed in the months/years prior to your damage.
Definition: Coverage for loss caused by enforcement of ordinances or laws regulating construction and repair of damaged buildings. Older structures that are damaged may need upgraded electrical; heating, ventilating, and air-conditioning (HVAC); and plumbing units based on city codes. Many communities have a building ordinance(s) requiring that a building that has been damaged to a specified extent (typically 50 percent) must be demolished and rebuilt in accordance with current building codes rather than simply repaired. Standard homeowners policies include a provision granting a limited amount of building ordinance coverage; this amount can be increased by endorsement. Also referred to as building ordinance coverage. *Definition taken from https://www.irmi.com/term/insurance-definitions/ordinance-or-law-coverage
We recommend carrying this coverage, especially on older homes, as you may not know when laws/codes change in your city that will require additional upgrades in the event you suffer a loss. So next time you are reviewing your policy or shopping at your renewal, keep an eye out for the Building Laws & Ordinances coverage on your Homeowners insurance. As always, please contact us with any questions you may have.
Keeping you informed,
Team Cobble