Law & Ordinance Coverage: What’s That?

When you purchase a property insurance policy, you expect that it will cover all types of damage that your property might suffer. However, many insurance policies have specific exclusions and limitations that may not be immediately apparent. One type of coverage that you may not be familiar with is law and ordinance coverage.

Law and ordinance coverage is a type of coverage that provides additional protection for property owners who may be required to rebuild or repair their property to comply with building codes or other legal requirements following a covered loss. It is important to understand that without this coverage, you may be responsible for paying the additional costs of rebuilding or repairing your property to meet current building codes or other legal requirements.

In the event of a loss covered by your policy, the insurer may be required to pay for the cost of rebuilding or repairing your property to its pre-loss condition. However, if local building codes or other laws have changed since your property was originally built or last renovated, it may be necessary to make additional changes or upgrades to your property to meet these requirements. This can add significant costs to the repair or rebuilding process.

Law and ordinance coverage can help offset these additional costs by covering the expenses associated with bringing your property up to code or meeting other legal requirements. This can include costs such as demolition and removal of damaged structures, upgrades to electrical, plumbing or HVAC systems, installation of fire sprinkler systems or other safety equipment, and compliance with new zoning or land use requirements.

It is important to note that law and ordinance coverage is not automatically included in all property insurance policies. You may need to purchase this coverage as an add-on to your existing policy or as part of a separate policy. Additionally, coverage limits and specific requirements may vary depending on your insurer and your location.

When deciding whether to purchase law and ordinance coverage, it is important to consider the age and condition of your property, as well as the building codes and other legal requirements in your area. If your property is older or has not been recently updated, it may be more likely that you will need to make additional upgrades or changes to meet current building codes and other legal requirements.

In addition to protecting your property from unexpected costs associated with rebuilding or repairing, law and ordinance coverage can also help to ensure that your property meets current safety standards and legal requirements. This can help to reduce the risk of future losses or liability issues and ensure that your property remains a safe and compliant place for your family, tenants, or customers.

If you are unsure whether your current property insurance policy includes law and ordinance coverage, it is important to review your policy documents and discuss your coverage options with your insurance agent or a qualified attorney. At Parrish Law, our experienced team can help you understand your insurance coverage and your legal rights and obligations following a loss. Contact us today to schedule a consultation and learn more about how we can help you protect your property and your rights.