Home Insurance Insights
What Is Ordinance or Law Coverage?
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Home Insurance Insights
If a fire, severe storm, or other catastrophic event damages your home, there is going to be a long list of projects you will need to undertake to restore it to its pre-disaster condition. In addition, you may be required by town or state laws and ordinances to make upgrades to your home in order to comply with the latest building codes. Standard home insurance includes Dwelling Coverage to assist with the cost of rebuilding your home, but to help you pay for any required improvements, you will need to make sure you also have Ordinance or Law Coverage.
While all municipalities’ building standards vary, the following areas of a property are the most likely to go out of code:
As part of the rebuild process after a loss, local building laws and ordinances may require you to replace one or more of these home systems or structures with modernized, safer equipment or higher-grade, weather-resistant materials—not just in the portion of your home that experienced damage but throughout your property.
After you file a homeowners claim for a covered event, you may learn that current building codes obligate you to make certain home improvements. If your homeowners policy includes Ordinance or Law Coverage, you may get help with the following three types of associated expenses:
It might seem as if Ordinance or Law Coverage is only necessary for homeowners with older properties, but it is valuable financial protection for all homeowners. Building codes often change year to year, which puts every homeowner at risk that their property may not be up to par with the latest building standards at the time they experience a loss.
You may already have some Ordinance or Law Coverage—the standard amount is 10% of your Dwelling Coverage limit—but you should double check with your local insurance professional that it is included in your policy and how much coverage you have.
In addition, you and your agent may want to discuss increasing your current Ordinance or Law Coverage limits based on factors such as:
Lastly, you may want to see if your property is eligible for The Andover Companies Superior Home Insurance Protection Plan as this unique policy automatically provides homeowners with an Ordinance or Law Coverage limit equal to their Dwelling Coverage limit.
Dwelling Coverage is often considered the most critical component of home insurance. It is designed to cover the physical structure of your home, including permanent fixtures and any attached structures.
Since Dwelling Coverage and Other Structures Coverage typically help homeowners pay for repairs, replacements, or the cost to rebuild their property after a covered loss, having the right coverage amounts is crucial.
Whether you select a Named Perils or Open Perils insurance policy can affect which risks your home and its contents are protected against. It is important to know how they differ and what coverage you have.
Most properties are best insured by an HO-3 or HO-5 policy because both policies include six essential home insurance coverages. The key difference is in the coverage they provide for personal belongings.
Standard homeowners, condo unit owners, and many renters insurance policies typically provide Personal Property Coverage, which is critical protection to have if belongings are damaged or stolen.
If your home is declared uninhabitable due to a covered event, and you have to temporarily relocate, Loss of Use Coverage typically helps pay for necessary incremental living expenses you incur as a result.
“I feel comfortable having my insurance with The Andover Companies. I know that if something terrible happens, they will be there to support my family and guide us through the process. Insurance can be confusing, especially when you have multiple policies, but they have simplified the details so we can understand everything easily!”
“The Andover Companies service team is professional, personable, and extremely helpful. We’ve had our homeowners insurance with The Andover Companies for over six years and are happy to have recently added our secondary home with them in another New England state. I highly recommend insuring with them.”
“You can truly understand the value of your home insurance when you have a claim. My husband and I experienced firsthand how easy it was to work with The Andover Companies. A tree fell on our property, blocking the driveway. We submitted a claim with Andover and within days had a check in hand to reimburse us for the tree removal. The process was seamless.”
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