September 28, 2011
One of the most overlooked coverages that building owners don’t have is Ordianace and Law Coverage. Building codes are constantly being updated, but many business buildings may not be exempted from the newer codes simply because they were constructed prior to the enactment of the new statutes. The building laws exposure that this endorsement was originally designed to cover was the exposure created by many local building ordinances, requiring any building which is damaged to some specified extent (such as 50 percent) to be demolished and reconstructed in accordance with current building codes. Other ordinances that could affect rebuilding are zoning laws and ADA compliance. Ordinance and law coverage is not included as a standard part of a business policy as it actually improves a business’ pre-loss condition. If a business does not opt to add this useful coverage they could end up paying the difference between the covered loss and the cost of bringing the building up to code, or if necessary […]