Ordinance or Law Insurance Coverage
What Is Ordinance or Law Coverage?
When it comes to commercial property insurance, evolving zoning and building codes can often make the the rebuilding of property to it’s former state a much more expensive endeavor than insurance covers. Building and zoning codes are implemented in order to preserve safety and are not taken lightly. Building Ordinance or Law insurance coverage is a property insurance endorsement that reimburses property owners for cost associated with demolishing, repairing, rebuilding, or constructing a structure if a covered loss prompts additional changes due to these laws or regulations.
This can especially pose a problem for older buildings. When getting a permit to rebuild a damaged property you are required to pay for new expenses in order to adhere to the mandated upgrades from codes(take a look at the extensive list of Oklahoma City’s Code of Ordinances to see how rapidly ordinances can change.
Examples of such expenses can include:
Sprinkler Systems
Upgraded weatherproofing features like storm windows or roofs
Handicap compliance features
Plumbing or wiring upgrades
When looking at coverage there are 3 levels of coverage to look at:
Coverage A-Value of undamaged portion of the building
Coverage B-Debris Removal
Coverage C-Increased cost of construction for bringing property up to code
Ordinance Or Law Insurance is not a costly endeavor but can, nevertheless, potentially save you a fortune in property reconstruction costs. Reach out to me if you have any questions regarding Ordinance or Law Coverage or any other Commercial Property insurance questions or concerns.
