Ordinance or Law coverage, do you have it and do you really need it? The answer to both of these questions should be yes. I’ll explain a bit about the three parts of Ordinance or Law coverage on a homeowner’s policy. If you’ve never heard of the coverage, hopefully after reading my blog you see the importance of this coverage and why you will want to make sure you have it.
First, it’s important to understand that the Ordinance or Law coverage has three separate types of coverage to it. These three types of coverage aren’t in any particular order.
1. Coverage for loss to the undamaged part of a covered structure. If local code requires a partially damaged structure to be demolished.
2. Increased demolition costs. Some building codes will require partially damaged building to be demolished and there will be additional cost.
3. Increased cost of construction. Pays for any increased expenses incurred to upgrade, repair, or replace the building with one conforming to the current building laws or ordinances.
If you have a covered loss and the State/Local Ordinances or Laws require that you meet the current building codes, you will need Ordinance or Law coverage to pay for the increased cost to bring the structure to code.
If you are not sure if you have this coverage on your homeowner’s policy this is a great time to check. Regardless if I’m your Insurance Agent or not, I’m happy to review your policy with you to make sure you have the right coverage in place before a loss happens.