Building Ordinance Coverage

Imagine this, you own an older building that unfortunately suffers a fire loss, and it destroys the top floor of your building, but the lower level isn’t affected. However your local building codes and ordinances require that you demolish the entire building due to the amount of damage!

Your standard property policy will cover the damage caused by the fire, however it excludes the enforcement of law or ordinance that’s requiring you to tear down the undamaged half of the building. This is where Building Ordinance or Law Coverage comes into play. Ordinance or Law Coverage is available by endorsement. It covers the additional costs when building code enforcement requires more than just basic repair of the damaged structure if the building has suffered damage by a covered cause of loss, such as fire.

Though Ordinance or Law insurance is usually added by endorsement to your commercial property policy, your current policy may not include it, or have inadequate limits. Be sure to check your policy to see whether or not it’s already included, and has the necessary amounts to properly cover you. Or call us and we’ll do a quick coverage audit for free so you can get your answer fast.