Yes, standard home insurance covers you in the case of damage to your home, such as a fire, hail storm, or tornado. But what if your home is older, you haven’t had it inspected in years, and it sustains significant damage? Is it covered?
The answer is yes and no.
Ordinance and Law have limits, most typically 10%, 25%, or 50% of Coverage A, and building requirements vary by state.
For example, if your home is worth $200,000 and has $70,000 worth of damage, your homeowner’s policy will cover the cost of home repair, minus your deductible, per the standards that were in place when you built or bought the home.
However, suppose you have ordinance and law coverage. In that case, your insurance policy limits can cover the cost of upgrading the home to meet current building codes, which could be a high out-of-pocket cost if you don’t have this added coverage.
In addition, if your home damage was greater than 50% of the home’s current value, depending on the state you reside in, you may be required to tear it down and rebuild. With ordinance and law coverage, you could be covered for 100% of the rebuild (less your deductible).
How Many Ordinances are There?
Much is dependent on the city, county, and state where you reside, but the number may surprise you. Building ordinances or zoning laws can pertain to weather, fire safety, plumbing, wiring, electrical, and handicap access. You can only be sure if your home is compliant is by hiring a home inspector every few years (whose job is to know state and local codes) or keeping up to date on the code changes yourself by checking state and local ordinances online.
If you have this policy coverage, all mandates are covered on your insurance whenever and however they change.
How Advanced Insurance Designs Inc. Can Help
We have homeowner policy experts in our Akron and Wadsworth, Ohio offices who are poised to help you decide which homeowners’ policy additions are best for you. Please call us at our Akron location 330-753-8700 or Wadsworth office 330-334-1010 to set up a virtual or face-to-face appointment.
