Don’t Pay Thousands of Dollars Out-of-Pocket

Building Ordinance Insurance is often overlooked, but is very important.  Even so, some policies may not offer building ordinance insurance at all.  So what is building ordinance coverage… and why is it so important?

If three-fourths of your building were destroyed in a fire, your insurance company would pay you for the damaged three-fourths of the building and no more.

The city may tell you to knock down the remaining one-fourth of your building, as it is not livable.

• If you don’t have enough of building ordinance coverage A, you would be paying for one-fourth of the building costs out of your pocket.
• If you didn’t have enough of coverage B, you would be paying to demolish and remove that one-fourth of the building as well.

These costs can add up to tens of thousands of dollars.

Building Ordinance Insurance Coverage A: Covers loss in value of the undamaged portion of the building due to demolition pursuant to a building ordinance or law.

Building Ordinance Insurance Coverage B: Covers the cost of demolition and removing of debris of the undamaged portion of the building, if building ordinance law requires demolition.

Building Ordinance Insurance Coverage C: Covers the increased cost to repair, reconstruct or remodel damaged or undamaged parts of the building to comply with a building ordinance or law.

Make sure that you contact your agent at least once a year to review your coverage and make appropriate updates. Taking the time before something happens protects yourself and your investments.