Ordinance of Law, Property Owners Take Note

Posted on: August 7th, 2017 by Agent Mark No Comments

ordinance of law

Your home or any other property you own all have one thing in common:

When it’s time to rebuild a damaged part of the building your repair/rebuild project may be subject to ever changing town building codes. Town building codes typically don’t change to save on construction costs,changes are often significant and costly.

Your home should be insured for its “Replacement Value.” This means that the limit of insurance you selected would be sufficient to “Rebuild” your home in its entirety with the same materials.

What happens when you insured your home at Replacement Value and three years later the town updated its building codes?

You may have a gap in your insurance coverage which is why every property owner needs to include Ordinance of Law coverage on their property insurance policy. This additional Ordinance of Law coverage would provide:

Coverage for loss caused by enforcement of ordinances or laws regulating construction and repair of damaged buildings. Older structures that are damaged may need upgraded electrical; heating, ventilating, and air-conditioning (HVAC) or plumbing units based on individual town or city codes.

In New England we are blessed with lots of older homes and buildings that are unique in construction and architecture. Most of these homes and buildings would benefit greatly by including Ordinance of Law coverage in their insurance program. At our agency we have also seen several newer homes in need of this coverage as well. Coastal properties can be especially at risk.

The cost for Ordinance of Law? Not as much as you would think! Depending on the value and location of your property, most premiums we see are between $50-$75 per year.

What should every property owner know about Ordinance of Law?

1) You need it, and

2) The coverage may already be included on your policy. Check in with us before a loss occurs to review your Ordinance of Law coverage status.

Call or email us at Ordinance@herlihygroup.com to review this coverage on your property today.

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