If your home is damaged and needs to be rebuilt or repaired, your homeowners insurance won’t cover the cost of updating the structures of your home to bring them in line with local building codes. Luckily, ordinance law coverage is here to save the day. Keep reading to learn more!
What Is Ordinance or Law Coverage?
Also called “law and ordinance coverage”, this is an add-on to your homeowners insurance that kicks in when your home is damaged by a covered peril and you need to bring the damaged parts of your property up to code.
This coverage is useful because your standard homeowners insurance policy won’t help pay for the cost of rebuilding your cost up to the current specifications.
Ordinance or law coverage helps pay for bringing certain structures of your home in line with the most recent building codes, including:
- Plumbing system
- Electrical wiring
- HVAC systems
- Foundation
- Roofing
Who Needs Ordinance or Law Coverage?
Unless your home is brand new, ordinance or law coverage is always a good idea. Building codes change so frequently that even homes built one or two years ago may be already out of code.
Ordinance or law coverage typically includes three types of protection:
- Loss to the undamaged part of the building. Covers the loss of value associated with the undamaged part of the building when you have to demolish your home after a covered incident in order to comply with building codes.
- Demolition costs. Helps cover the cost of demolishing the undamaged parts of your home if required by law.
- Increased cost of construction. Covers the additional costs of repairing or replacing your home after it’s been affected by a covered peril.
Common purchase options for ordinance or law coverage include 10, 25, or 50 percent of your dwelling policy limit. The amount you choose will depend on how old your home is and the building codes that have come into effect since your home was built.
To learn more about ordinance or law coverage and find the option that works for you, contact our experts at RF1 Insurance. We’ll be happy to answer your questions and help you make sense of your alternatives.
RF1 Insurance Services: Ordinance or Law Coverage in Southern California
At RF1 Insurance, we work with some of the world’s most trusted insurance companies, including Safeco, Guard, Stillwater, National General Premier, Aegis, and the California FAIR Plan.
Our offices are located in Ontario, California. Contact us today by email (info@RF1ins.com), telephone (909-359-2067), or social media (Facebook, Twitter, LinkedIn) for a free quote or to learn more about a full range of insurance solutions.
