Each year your home becomes older and city ordinances are constantly changing. What if you suffer a substantial loss, are you insured properly? Ordinance & Law coverage is an important coverage to have in the event of a claim. This coverage protects against the risk of increased construction costs due to building codes required by the city which can be very costly.
As your home becomes older certain changes in your county’s building codes can reflect new guidelines for construction. These codes can apply to remodeling or new construction on a home. For example, if your home was built in 1955 and the building codes changed in 1980 stating that your home must now comply with certain building materials and wiring and you incur a loss, Ordinance or Law coverage would help you comply with these codes. The majority of Homeowners policies typically pay only to replace with same the materials as the home previously had, they do not pay for construction materials that are unlike original materials even if it is a requirement to be rebuilt. If this occurs the cost of rebuilding your home could be significantly increased if you don’t have Ordinance or Law coverage.
By obtaining Ordinance and Law coverage on your Homeowners Insurance policy, this can help reduce any out of pocket expense you would incur to comply with the new codes. Limited coverage may apply on certain policies. To learn more about this valuable coverage, please contact one of our professionals at HWP Insurance for your San Diego Insurance and Temecula Insurance needs.
