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

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.

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

Drowsy

Preventing Drowsy Driving

Every year, the National Sleep Foundation organizes Drowsy Driving Prevention Week to raise awareness about the dangers of driving while fatigued.
Smoke Detector

Daylight Saving Time Change: A Perfect Reminder to Check Your Smoke and CO Detectors

Daylight savings time is a perfect opportunity to keep your home safe by checking your smoke and carbon monoxide (CO) detectors. Time change days are memorable markers, making it easy to establish this habit without any extra reminders.
Flooding

Why Flood Insurance is Essential: Lessons from Hurricanes Helene and Milton

The devastating impacts of Hurricanes Helene and Milton have shown that flood risk isn’t limited to coastal areas. These storms have highlighted a crucial gap that individuals and businesses need to be aware of: flood damage is generally not included in typical home, condo, renters, or commercial property insurance, making a separate flood insurance policy essential for true protection.
Deer

Defensive Driving to Avoid Deer Collisions

With deer mating season in full swing from October through December, drivers face an increased risk of collisions. As deer are more active, especially around dawn and dusk, habitat loss has pushed them closer to roadways. Here’s how defensive driving can help you avoid an accident.
Massahusetts DIA Seal

MA Dept of Industrial Accidents New Notice Requirements

The Department of Industrial Accidents (DIA) has revised the Notice to Employees and has established new notice requirements. On or before September 16, 2024, all employers must utilize and repost the revised Notice to Employees poster.
Driving Car

Factors Affecting Your Car Insurance Rate

The cost of auto insurance is influenced by a wide range of factors. Together, these variables shape the overall cost of auto insurance. With this in mind, it can be helpful to better understand how the following elements may impact your rates:
Insurance Policy

Why Personal Liability Insurance is Essential for Homeowners, Condo Owners, and Renters

An essential part of home, condo & renter coverage often overlooked is personal liability insurance, which provides financial protection if you’re legally responsible for causing bodily injury or property damage to another person, both on and off your property.
Spam Phishing Scam

Recognize Spam and Phishing Emails

As more of our daily lives move into cyberspace, hackers, cybercriminals and spam bots may lurk behind every new message that shows up in your inbox. Even robust spam filters may not be able to catch every unwelcome email. Fortunately, you can act as an additional line of defense for yourself and your electronic devices by understanding the warning signs of spam and phishing emails.
Distracted Driving

How Distracted Driving and Texting Impact Your Auto Insurance Premiums

One major reason for auto insurance premiums going up is the rise in distracted driving, especially texting while driving. Distracted driving has become a leading cause of accidents, pushing up costs for insurance companies and, ultimately, leading to higher premiums for all drivers.

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.