Posts Tagged ‘Ordinance of Law’

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 to review this coverage on your property today.

My Lunch Time Run

Posted on: November 4th, 2013 by Personal Insurance No Comments

I went running this afternoon during my lunch break. For me this is an opportunity to clear my head, leave my work behind for a few minutes and get in some exercise.

As I headed down a street in our neighborhood, I stopped in front of a two family house that had just suffered a large fire loss. The windows were boarded up and the roof had a hole in it. There were about a half dozen guys walking around looking at the charred remains of this home.

I thought to myself, well it won’t be that bad. I am SURE they had insurance and can rebuild. I then began to think about this property owner and thought…

  • I hope they paid their bill on time.
  • I hope they updated their limits so their home was insured to value.
  • I hope that they included Ordinance of Law coverage because I could see this was an older building and they may be subject to new building codes during their rebuild.
  • I hope they had added that replacement cost coverage to their home and their contents.
  • I hope that they included loss of rents coverage.

This scene of this charred home reinforced to me that as agents we can never stop reminding our valued clients how their insurance works and what we recommend.

When the fire hits, we want your property and your contents covered.

Once I got back to my desk, I received an email from our local high school.

Here is an excerpt from this email:

Family in Need of Assistance
A recent fire in XXXXX has displaced a family. All possessions, including clothing, have been destroyed. If you would like to help, please consider a gift card donation. A suggestion put forward has been Target as both clothing and food can be purchased in the same location.”

I do not know this family, but our family will send a gift card as they are neighbors in need.

Then for me it will be back to work trying to think of ways to get our clients to review their coverage so that if there is a claim they will have the insurance they need.

And, I am rechecking the smoke detector batteries in our house tonight.