An important coverage that is available on a homeowner’s policy is Ordinance and Law Coverage. This coverage is not always included in your homeowner’s policies, but can be added by endorsement for an additional premium. Homeowner’s insurance policies are designed to pay for repairs to your home to put it back in the same condition that it was before a loss. Ordinance and Law coverage is designed to cover the additional costs for loss caused by the enforcement of ordinance or laws regulating construction and repair of damaged buildings. Under the Florida Building Code and local ordinances, older buildings that are damaged may need to integrate upgraded systems like electrical, plumbing, windows, doors, roof or HVAC into the repair plan before the local building department will approve a permit for reconstruction or repair. Those upgraded systems can add thousands of dollars to the cost of repair or reconstruction.
To help better understand Law and Ordinance coverage, here is an example. Let’s say your home is damaged during a hurricane and you now have to replace your roof. The contractor who will be replacing your roof says it will cost $15,000 to replace the roof to the way it was previously installed, but to comply with the new building codes itwill cost an additional $5,000 to bring your roof to current codes. If you have Law and Ordinance coverage on your policy the additional costs are taken care of. If you do not have this valuable coverage the $5,000 will come out of your pocket.
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