office space

The Importance of Ordinance and Law Coverage

Property insurance is essential when you’re a building owner. But what about ordinance and law coverage? Ordinance and law coverage is an add-on to property insurance that ensures comprehensive coverage of your building.

Keep reading to learn more about ordinance and law coverage, what it covers, and why you should invest in it to protect your building.

What is Ordinance and Law Coverage?

Ordinance and law coverage is a type of insurance for building owners and real estate investors. In some instances, building damage may result in related but secondary actions and costs that are not covered by property insurance. Ordinance and law coverage reduces these costs and avoids long-term financial impact on a building or property owner.

What is Covered Under Ordinance and Law Insurance?

Ordinance and law insurance covers secondary costs that result from damage to a building. In some cases, only part of a building is damaged. However, undamaged parts of the building may still need to be repaired or torn down because they’re determined to be inhabitable. In this case, property insurance would only cover the repairs needed for the restoration of the damaged part of the building. 

The undamaged part of the building would have to be covered by the building owner. Ordinance and law insurance would cover any costs to repair the undamaged part of the building in this situation.

If a building isn’t up to code, there could be scenarios where the structure is damaged. In this case, the building may need to get up to code before repair costs can be determined. Regular property insurance will not cover these costs because they are not related to the building’s damage. Ordinance and law coverage would be required to pay for the costs of the building’s updates.

Why Should You Invest in Ordinance and Law Insurance?

Investing in ordinance and law insurance ensures that your building is covered in a comprehensive manner. While property insurance is useful, there are many secondary costs that could remain uncovered if your building were damaged. Ordinance and law insurance ensure that damage will not result in long-term financial impacts on property owners. 

Protect Your Building

The bottom line is that you should make it a priority to invest in both property insurance along with ordinance and law coverage for your building. This ensures that all costs related to building damage will be covered and will not fall on the property owner.

Portal Insurance offers real estate investor insurance to help property owners protect their buildings. Learn more about what we offer and get a quote to get started!

Bradley Flowers
Bradley Flowers

Thanks so much for the opportunity to assist with your insurance! Rest assured, we'll leave no stone unturned in our effort to find you the best combination of cost, and coverage.

Articles: 46