1. What types of building ordinance coverage can be included in homeowners insurance?
Building Ordinance in Homeowners Insurance
One of the most overlooked aspects of homeowners insurance is Building Ordinance coverage. Many policy holders are unaware of this form of coverage and the protection it provides, which can be essential in helping to repair and rebuild a home in the event of a covered loss.
What is Building Ordinance Coverage?
Building ordinance coverage is designed to ensure policy holders are able to rebuild their home in compliance with local building codes and ordinances. This type of coverage helps to replace the home with like kind and quality that meets current building codes should it be damaged by a covered claim.
What does Building Ordinance Coverage pay for?
This type of coverage helps to pay for the difference between the cost to repair a structure to its original condition and any additional monies needed to bring it in line with current local codes and ordinances. This could include:
- Permit Costs: Pays for any fees related to securing permits to rebuild.
- Demolition & Debris Removal: Covers the costs associated with clearing away debris and tearing down a damaged structure.
- Increased building costs: This can cover materials not readily available to restore the original structure.
What is not covered?
Building ordinance coverage only applies to building permit fees, demolition & debris removal and increased building costs, which are all related to damages and rebuilding to the local codes. These are the only costs covered in this portion of a homeowner’s policy. Anything else, such as building updates or additional renovations, would not be covered.
When to Apply for Building Ordinance Coverage
It is important for homeowners to understand that in the event of a covered claim, local ordinances and codes may have changed since you originally purchased your home. Make sure to ask your insurance provider about the coverage limits for your building ordinance coverage, as it can vary from policy to policy.
In conclusion, building ordinance coverage is an important factor to consider when shopping for homeowners insurance. It can provide protection for homeowners in the event of a covered claim and help to bring your home up to the current local codes and ordinances.