Insurance Insights: A Headge Against Increased Costs
When older buildings are damaged, local ordinances or laws may require upgrading electrical, heating, ventilating, and air-conditioning (HVAC) systems to current codes. In some cases, buildings that have been damaged to a certain extent (typically 50 percent) must be torn down and rebuild in accordance with current building codes rather than simply repaired. To address these possibilities, “Ordinance or Law Coverage” is available as an endorsement to a homeowner’s insurance policy. Without it, the homeowner is required to pay the difference between old and new building code requirements. For homes that are older than twenty-five years, ordinance or law coverage should be considered because codes may have changed a great deal in that time.
Ordinance or Law Coverage can save you thousands of dollars in upgrades you would otherwise pay out of pocket. The worst possible time to learn of coverage restrictions is after you have suffered a loss. Talk to us today about this important coverage. We are more than insurance specialists; we are your advocates. We make ourselves available to clients, explaining coverage options and navigating issues until they’re resolved.
Quick Tip: “Replacement cost” coverage for your building does not mean you have “upgrade cost” coverage unless you have purchased “Ordinance or Law Coverage” for your property.