Understanding Building Ordinance Coverage for Homeowners 

Homeowners insurance is designed to financially protect your property from unexpected damage. But if you’re facing major repairs or a full rebuild, it may not always account for the cost of bringing your home up to current building codes. Fortunately, equipping your home insurance policy with building ordinance coverage, a potentially valuable enhancement, can be a crucial choice.

What Is Building Ordinance Coverage?

Building ordinance coverage, also known as ordinance or law coverage, can help pay for the additional costs required to repair or rebuild a damaged home in compliance with updated local building codes.

This coverage may include financial aid for expenses related to the following:

• Upgrading electrical, plumbing or HVAC systems

• Installing fire-resistant materials or safety features

• Demolishing undamaged portions of a structure if required by law

Without this coverage, homeowners may be responsible for these costs out of pocket if their home is damaged and local codes have changed since its original construction.

Why Might I Need It?

Without this aspect of insurance, you could potentially face extensive costs while attempting to rebuild or repair your home and get your life back on track. Building ordinance coverage can be especially valuable if the following circumstances apply to you or your home:

• Your home was built decades ago.

• You live in an area prone to natural disasters.

• You lack a rainy day fund to help with unexpected out-of-pocket costs.

• Your local community recently updated building codes and requirements.

Is This Coverage Included in Standard Home Insurance Policies?

Standard homeowners insurance policies typically don’t include building ordinance coverage. Even if your policy includes limited coverage for such needs, it may not be sufficient to cover the full costs of necessary upgrades. Fortunately, building ordinance coverage can often be acquired as an endorsement.

How to Get Building Ordinance Coverage for My Home

For homeowners in Montrose, CO, the team at Home Loan Insurance is ready to help you understand and secure building ordinance coverage. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.