What is Ordinance and Law Coverage

What does this coverage do for me?Ordinance and Law coverage is a very important piece of your insurance coverage but it is one that we often see omitted or not listed at the proper amount on home insurance policies.

What, you ask, does this coverage do for you and why is it so important?  You pay your insurance company to insure your house at a certain value.  When our Personal Risk Analysts first put together an insurance proposal for you, they complete a “replacement cost estimator” with you.  This gives them an estimate of what your house would cost to rebuild with all the same features that it has today.  This is a very important step for us to create an accurate policy for you. Check out our article here for more information on this process.

Here’s the thing though, we will complete this comprehensive review and insure your home at the cost it would take to replace as it stand today.  The wrench is thrown into the system when you have a loss and go to rebuild the home.  The policy will provide coverage so that you can rebuild your home.  However, the government will not give you a permit to rebuild the home exactly as it stood unless it was already completely up to current code standards.  They will require you to build or repair the home to meet current code standards.

This is where Ordinance and Law Coverage kicks in. This coverage is especially important in Florida, where codes are constantly being updated to reflect the latest in safety and technology.  This coverage will help to cover any mandated upgrades and to demolish any parts of the building that the county may require to be torn down.

On standard insurance policies, you can purchase this coverage at either 25 or 50% of the amount of coverage you have on the property.  The tier that you need, will be dependent on many factors.  Contact us today to speak to one of our personal lines protection specialists about this important coverage.

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