Building Ordinance Coverage:
What's Your Responsibility?
A building is covered for a limit of $1 million. The building was partially damaged (60%), in a fire. Local ordinances require upgrading to the current building code when damage or renovations exceed 25% of the building and also require the demolition of the undamaged portion of the building. In this case, the total cost for demolition, debris removal, and increased cost of reconstruction totaled $1.5 million. You do the math! What went wrong?
Building Ordinance Coverage
Building ordinance coverage provides three basic coverages: A. loss to the undamaged portion of the building, B. demolition and removal of the undamaged portion of the building and C. any increased costs of repair or construction due to enforcement of building codes. This coverage needs to be added to the policy as the basic form provides minimal coverage for the enforcement of any ordinance or law. The value of Building Ordinance Coverage is to provide coverage for these costs.
For more information please call or email Nickie Heath Insurance Agency and we will be happy to answer your questions.