Let's say you own an older building, and it's partially damaged due to extreme weather, fire, or some other catastrophe customarily covered by property insurance. But when you try to rebuild damaged parts of the building, you find out that you're not completely covered for the costs of rebuilding.
It could be because your building was built prior to modern building codes. Every municipality sets its own city ordinances, and those are updated over time as safer products or techniques become available. So if your property was built in 1960, and you sustain damage today, your regular insurance might not pay for all your losses.
That's when ordinance insurance, also known as law insurance, becomes necessary. Here are three different examples of when ordinance coverage could apply.
While ordinance or law coverage can benefit owners of older properties, acquiring such coverage does require a rider or endorsement to your standard policy, and it will come at an extra cost. Still, paying a little extra now could help you in the long run. It's important to discuss your concerns and questions with your insurance agent. Ordinance coverage is specific to locations and circumstances. Ensure you understand what's available for your situation, how much it will cost, and if it makes sense for you.
We'd be happy to help you with your property insurance questions. Call or contact Sea Mountain Insurance today for more information.