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.