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

Business Insurance in Worcester, MA What You Need To Know

Business Insurance in Worcester, MA: What You Need To Know

Running a business in Worcester, MA comes with both opportunities and risks. From property damage to cyber threats, having the right business insurance is essential to protect your investment. Murphy Insurance Agency provides customized coverage for local businesses of all sizes and industries. With over 85 years of experience, we offer trusted advice and tailored solutions to help your business thrive.
Read more
What to Do When a Hurricane Threatens

Get Ready for Hurricane Season in New England: What You Need to Know

While New England is not typically directly in the hurricane "strike zone" like the Gulf Coast or the Southeast, that doesn’t mean we’re immune to the dangers of hurricanes and tropical storms. With that in mind, it's important to have a plan as hurricane season approaches and be sure you understand your insurance coverage.
Read more
Office workers

Massachusetts Enacts Pay Transparency and Pay Data Reporting Law

The new Massachusetts law, the Frances Perkins Workplace Equity Act, requires employers with 100 or more employees to provide pay data reports to the Massachusetts state secretary effective Feb. 1, 2025, and employers with 25 or more employees to disclose the pay range in job postings effective July 31, 2025.
Read more
Driver

Defensive Driving Tips

Using proper defensive driving techniques will help keep both you and other drivers safe on the road. With this in mind, be sure to implement the following defensive driving guidance the next time you get behind the wheel.
Read more
Women talking

Understanding the Insurance Knowledge Gap Among Gen Z

Surveys reveals that many Gen Z adults feel overwhelmed by insurance and lack understanding of basic coverage terms, leading to gaps in their protection. However, by working with trusted insurance professionals, they can gain clarity and make informed decisions about essential coverage for their future.
Read more
Murphy’s Law Now Officially Sponsored by Murphy Insurance

Murphy’s Law: Now Officially Sponsored by Murphy Insurance

Murphy Insurance is now the official sponsor of Murphy’s Law—because if anything can go wrong, it probably already has. To mark the occasion, we’re rolling out a tongue-in-cheek lineup of “coverage” for life’s most ridiculous moments, from lost socks to seagull snack theft. While these faux policies are just for fun (for now), our real team is always here with real coverage for life’s unpredictable turns. Happy April Fools Day from Murphy Insurance—when Murphy’s Law strikes, call Murphy Insurance.
Read more
Auto Insurance in Hudson MA

Auto Insurance in Hudson, MA: What You Need to Know

If you live in Hudson, MA, or the surrounding areas, securing the right auto insurance is essential. Whether you’re a daily commuter, a weekend traveler, or a first-time driver, having the appropriate coverage ensures protection on the road and compliance with Massachusetts’ legal requirements.
Read more
Car close-up

What to Do After a Hit-and-Run

When you’re involved in a vehicle collision and the other driver takes off without exchanging insurance information, this is commonly referred to as a hit-and-run. Review the following guidance to understand what information to collect and who to contact following a hit-and-run incident.
Read more
Pest Prevention Keep Your Home Pest-Free with Proactive Measures

Pest Prevention | Keep Your Home Pest-Free with Proactive Measures

Pests can cause structural damage, contaminate food, and pose health risks, making proactive prevention essential since home insurance doesn’t cover pest-related damage. Key prevention tips include proper food storage, maintaining outdoor vegetation, regular home inspections, and keeping living spaces clean to minimize pest attraction. For persistent issues, professional pest control may be necessary, and Murphy Insurance is available to provide guidance on home protection and insurance coverage.
Read more

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.