As a building owner, you’ve invested a lot in your property. But there’s a hidden risk many owners overlook: the gap between your current building’s compliance and ever-evolving building codes. When damage occurs, this gap can become a significant financial burden.
Building codes are constantly updating, but many commercial buildings aren’t required to meet new standards until renovation or rebuilding occurs. This creates a crucial exposure. And if your building suffers damage, you may be legally required to bring the entire structure up to current codes during repairs.
The Hidden Risk in Your Building Insurance
Standard business property policies typically only cover restoring your building to its original condition, not the additional costs of mandatory code upgrades. Without proper coverage, you could face high, unexpected expenses.
Ordinance and law coverage is not included as a standard part of a business policy, but adding it fills this critical gap with three essential protections:
Coverage A: Loss to Undamaged Building Portions
Pays for the value of undamaged portions of your building that must be demolished due to code enforcement. This coverage is included within your building’s insurance limit but provides protection that standard policies exclude.
Coverage B: Demolition Costs
Covers the cost to demolish and clear undamaged parts of your building when local ordinances require removal following a loss.
Coverage C: Increased Construction Costs
Pays the additional expenses to repair or remodel damaged portions to current code requirements, addressing zoning changes, ADA compliance and other mandated changes.
Final Thoughts
Adding Ordinance and law coverage to your property policy is a cost-effective way to protect against unexpected expenses before damages even occur. Protect your workplace and mitigate commercial risks with UNICO Group. Our expert team specializes in comprehensive insurance solutions tailored to the unique challenges that property owners and managers face. Contact us today for more information.
