What is “Building Ordinance or Law” coverage

Building Ordinance or Law Coverage

Many home policies include coverage for building ordinance or law changes.  If your home is damaged, very often changes need to be made to the house as part of the repair process that are mandated by new zoning codes.  For example, if your home was damaged substantially by a tree that fell on it, you might need to change the set back of the home to conform to new zoning laws that had been enacted after the house was built.  This could dramatically increase your cost of the repair.

This type of issue is not covered as part of a companies’ obligation to repair .  You generally have 10% of the value of the home on the policy to pay for the costs associated with becoming compliant, which for something as drastic as a change in the setback from the street might not be sufficient for a New Jersey home insurance policy (for example).

Who Should Consider Building Ordinance or Law Coverage?

Building ordinance or law coverage can be increased for an additional cost; higher end policies also will typically provide more coverage.  Older homes that have not been completely overhauled are generally the most in need of building ordinance or law coverage.  We recommend that you speak with your agent to determine if you should increase building ordinance or law coverage to be adequately protected.