Why Ordinance or Law Coverage Can Be Important for Home and Business Properties

September 1, 2023||inBusiness Insurance, Personal Insurance|business insurance, homeowners insurance, ordinance or law, personal insurance

Changes in building codes often entail unforeseen costs that can surpass the coverage provided by standard insurance policies. Comprehensive protection is important to safeguard against potential financial liabilities arising from these adjustments.

Do you know how your home or other property would comply with current building codes if you had to rebuild after a fire or other loss? If not, you’re not alone; however, it’s a real concern that you need to consider. Changes to building ordinances and laws can require upgrading your building to new standards during reconstruction, which can result in extra expenses that may not be covered by a basic property insurance policy.

Why Ordinance or Law Coverage Can be Important for Home and Business Properties
Click here to submit an inquiry to Murphy Insurance or call us at 800 222 8711
The MA Board of Building Regulations and Standards is continually working on changes to the building codes related to construction and energy standards. These changes and other local ordinances can become an issue when it comes to rebuilding, especially after a significant loss.


Ordinance or Law Insurance Covers Extra Expenses Not Covered by a Basic Policy

Insurance policies only cover rebuilding to the condition before a loss, not betterments and upgrades.  Even if you are diligent about ensuring your property valuation and coverage limits are appropriate for replacement costs, most property policies only provide minimal coverage to address additional costs resulting from ordinance or law issues. To be protected, you need to purchase Ordinance or Law Insurance, which covers explicitly such extra expenses including:
  • Loss to the undamaged portion of the building
  • Demolition and removal costs of the undamaged portion of the building
  • Increased costs of repair or reconstruction due to building code changes

For example, your building is 50% damaged in a fire.  Your local building code may require that the undamaged portion of the building be demolished or that you update components of the intact structure to current building codes to rebuild. The demolition or upgrades to the undamaged portion of the building wouldn’t typically be covered by a standard policy, which only pays for repairs and replacement of the damaged portion.

There are numerous other examples of situations where laws create extra expenses that will only be covered if you have the option of expanded Ordinance or Law Insurance added to your property policy. The age of your building may not be relevant, so don’t assume that just because your property was recently constructed, you don’t have to worry about ordinance or law situations.

To learn more about Ordinance and Law Insurance, please Contact Us at Murphy Insurance Agency.

Read Other Blog Posts

Umbrella Insurance

Understanding the Importance of Umbrella Insurance: Why It’s Worth Considering

Most of us already have auto, home, and life insurance—but what about an umbrella policy? While it may seem like extra coverage you don’t need, an umbrella policy can provide crucial protection that goes beyond the limits of your existing insurance. It’s designed to safeguard your assets and give you added peace of mind when life’s unexpected situations arise.
Read more
What to Do When Ice Dams Form A Practical Guide for New England Homeowners

What to Do When Ice Dams Form: A Practical Guide for New England Homeowners

Ice dams can form quickly during New England winters and lead to leaks, interior damage, and costly repairs. Learn what causes ice dams, the early warning signs to watch for, and the safest steps to take if one has already formed. This guide also shares simple prevention tips to help protect your roof and home throughout the winter.
Read more
Carbon Monoxide Safety for Your Home and Your Vehicle

Carbon Monoxide Safety for Your Home and Your Vehicle

Carbon monoxide is a silent winter danger that can affect anyone, whether you’re at home or sitting in your vehicle during a storm. Heavy snow, blocked vents, and improvised heating sources can cause CO to build up quickly without warning. This guide explains the most important do‑nots, safer alternatives, and key precautions to help protect your household, your passengers, and your neighbors during severe winter weather.
Read more
Mardi Gras 2

Mardi Gras: Taste of the Chamber Brings Local Flavor and Networking to Marlborough

Murphy Insurance proudly sponsored and attended the Mardi Gras: Taste of the Chamber event hosted by the Marlborough Regional Chamber of Commerce. Laura and Aida joined local businesses and community leaders for an evening of networking, great food, and celebration while supporting the region’s vibrant business community.
Read more
Black History Month Contributions in the Insurance Industry

Honoring Black History Month: Contributions in the Insurance Industry

Honoring Black History Month by highlighting the pioneering Black leaders and entrepreneurs who shaped the U.S. insurance industry. Learn how their efforts expanded access to coverage, promoted financial literacy, and strengthened communities through economic empowerment and generational wealth building.
Read more
Taking Notes 1200

Top 5 Ways to Prevent Employment Practices Liability Claims

Employment practices liability (EPL) claims—such as alleged discrimination, harassment or wrongful termination—can be complex and costly, leaving impacted employers with lasting financial and reputational fallout. Taking steps to reduce EPL exposures and promote a positive workplace culture can help prevent such claims and related lawsuits. Here are five best practices for employers to consider.
Read more
Life Insurance Love Insurance

Love Insurance: How Life Insurance Can Be the Best Valentine’s Gift

This Valentine’s Day, celebrate love that lasts. Discover how life insurance, or love insurance, can protect your family and provide peace of mind beyond flowers and chocolates.
Read more
Shoveling snow

Snowmelt Damage Prevention Tips

Accumulating water from melting snow and ice—also known as snowmelt —can lead to significant property damage if not managed. It's important to be aware of this risk and take measures to prevent issues. Don’t let snowmelt wreak havoc on your home. Review guidance for snowmelt damage prevention recommendations.
Read more
Side-view mirror

The Defensive Driving Process

To be a defensive driver, it’s important to follow a three-step process: see hazards, determine potential responses, and act in time. Driving in Massachusetts means navigating heavy traffic, narrow roads, construction zones, and unpredictable New England weather. Defensive driving helps local drivers anticipate hazards, reduce accident risk, and protect their auto insurance record.
Read more
PreviousNext

Visit Our Personal Insurance Page

Personal Insurance

Life is an ever-changing journey, and it deserves a thoughtful, comprehensive plan to protect the things and people that matter most. Our dedicated team at Murphy Insurance is here to assist you in creating that plan. With a wide range of product options at our disposal, we ensure that your plan is tailored precisely to your requirements. Our commitment to providing clear, intelligent guidance to help you achieve true peace of mind. Learn more about our personal insurance portfolio.

Visit Our Business Insurance Page

Business Insurance

Murphy Insurance stands as your steadfast partner in safeguarding your business from unforeseen challenges in today’s dynamic business landscape. In an era where comprehensive business insurance is not just a prudent choice but a vital one for ensuring the long-term stability and security of your enterprise, we are here to offer our expertise. Running a business inherently entails various risks that can potentially impact your financial stability and reputation. Learn more about our comprehensive business insurance solutions, which are meticulously designed to protect you from these potential threats, granting you peace of mind necessary to focus on the growth and prosperity of your business.