If your business or property were destroyed tomorrow, do you have enough insurance coverage to replace it? Those who have a sizable replacement policy will undoubtedly answer “yes,” and they may be right; their current coverage might be enough to replace the entire structure as it was prior to being destroyed. But what if building codes have changed since it was first erected? What if replacing it would be violating local ordinances or laws, but the cost to make the necessary upgrades is considerably more than the coverage available? This is where an ordinance or law policy could help. 

What Does Ordinance or Law Insurance Cover?

Ordinance or law insurance helps bridge the gap between what a structure originally cost to build and what it will cost to erect under any new building codes. In other words, it covers the additional costs incurred because of building code enforcement when repairing or replacing a damaged structure. 

There are three kinds of ordinance or law coverage. The first covers the loss of the undamaged portion of the building when ordinances or laws require the entire structure to be demolished. The second covers the actual cost of demolishing the building and excavating the site, and the third covers any additional costs for erecting a replacement that is up to code. 

Who Needs Ordinance or Law Insurance?

Everyone who owns property should ensure ordinance or law insurance is part of their policy. But what about those who have just finished constructing their building? Even though a brand-new building is currently up-to-code, eventually the municipality will update their laws and ordinances—these can change at anytime. And when they do, the structure may no longer meet all requirements. Instead of frequently reviewing local statutes to see when you should add this endorsement, factor in the costs of demolition, debris removal, and reconstruction when estimating the replacement value of the property for insurance at the onset. 

If you need helping finding a reasonable ordinance or law policy, turn to Seeman Holtz Property & Casualty. Based in Boca Raton, FL, this insurance agency works with clients nationwide, and they rely on more than two decades of experience to build the perfect policies. After discussing your particular coverage and financial plan, including those regarding long-term care, Medicare supplemental, or life insurance, their team will show you the best available policies from name-brand providers. Visit their website to learn more about the products they assist with or call (844) 255-6639 to make an appointment.