Streetsmart insurance Blog
Whether you work from home or a storefront office, you need a safe, affordable space to conduct business. If property damage and government ordinances force you repair or rebuild your building, ordinance and law coverage can help you keep your doors open.Ordinance and law coverage protects property owners from financial loss after their building is damaged by a covered peril. Government regulations usually force property owners to repair, rebuild, or demolish damaged buildings, and ordinance and law coverage can help cover the cost of construction.
Although it is not included in your traditional commercial policy, ordinance and law coverage can be added to your business owner’s policy (BOP) as an additional endorsement. Many homeowners also choose to include ordinance and law coverage on their homeowners insurance policy for personal and professional reasons.
How Does Ordinance And Law Coverage Work?
Ordinance and law coverage applies to three distinct situations: partially damaged buildings, demolition, and increased cost of construction.
Partially Damaged Buildings: If your building is damaged by a covered loss, government regulations may prevent you from working there until the damage is repaired. Whether you need to fix cosmetic damage or demolish and rebuild a part of your building, Coverage A – Undamaged Portion will help pay for your expenses.
Complete Demolition: Although Coverage A – Undamaged Portion will cover a partially damaged building, it will not allow you to demolish the entire structure. If the damage to your building is greater than 50% of the total structure, Coverage B – Demolition will cover the cost of tearing down the building and clearing debris from the premises.
Increased Cost Of Construction: Over time, government laws and ordinances change to meet the needs of their communities. If new regulations increase the total cost of construction, Coverage C – Increased Cost Of Construction will help you repair or replace your building according to code.
Street Smart Insurance is committed to providing affordable coverage.
Whether you are looking for your first business owner’s policy or you are shopping for a better price, our agents are ready to help.