Ordinance or Law Coverage – What’s that cover?
Ordinance or Law coverage provides additional insurance to bring your home up to code after a loss.
Can you give me an example?
Let’s say that a home has a fire in the kitchen. As part of the fire, let’s assume that some of the electrical systems were damaged. The home insurance would generally cover the replacement of the damaged kitchen and the damaged electrical systems. However, code enforcement / city officials may require that the home’s entire electrical system be replaced if it’s original installation was prior to the most recent code change. Even if it wasn’t completely damaged. The insurance company would consider the replacement of the entire electrical system an improvement to the home and would most likely deny that portion of the claim. However, if the homeowner has Ordinance or Law coverage their policy would most likely provide additional coverage to bring the electrical systems up to code.
How much coverage do I need?
The last significant building code change in Florida was in 2001 and any homeowner with a home built prior to 2001 should have a significant amount of Ordinance and Law coverage – 25% of coverage A at a minimum. Remember, as a home ages and when building codes change this coverage becomes more and more important.
Want more tips like this?
Click Here for an article that explains screen enclosure coverage or Here for a guide to help you shop for home insurance quotes.
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