What is Ordinance or Law Coverage in Florida?
Navigating Ordinance or Law Coverage: Essential Insight for Property Owners
Clients ask me almost every week, "What is ordinance or law coverage?" This specific type of coverage addresses the additional expenses related to complying with current building codes during the post-damage repair or reconstruction process. Section 627.7011 of the Florida Statutes requires that an insurance carrier providing homeowners insurance must offer Ordinance or Law coverage. However, not every property owner elects to receive this coverage.
Given the ever-evolving nature of building codes and regulations, grasping the significance of this coverage is vital for any property owner, especially when facing the potential for unexpected financial challenges during recovery.
This blog post from our property damage attorney seeks to demystify ordinance or law coverage, shedding light on its importance and implications for your property insurance claims. Moreover, we'll highlight how consulting with a seasoned home insurance claim lawyer or property damage attorney can safeguard your interests and ensure you receive the compensation you are entitled to under your policy.
Understanding Ordinance or Law Coverage
Ordinance or law coverage addresses the additional expenses related to complying with current building codes during the post-damage repair or reconstruction process.
Building regulations constantly change, often becoming more stringent to enhance safety and sustainability. If your property, once compliant at the time of construction, now falls short of these updated standards, a standard property insurance policy might not cover the costs to bridge this gap. This is the juncture where ordinance or law coverage becomes indispensable, covering the expenses to align your rebuilding efforts with contemporary legal requirements.
Key Facets of Ordinance or Law Coverage
This coverage encompasses three primary components:
Coverage for the Undamaged Building Part: This accounts for the value of the building's undamaged sections that must be demolished or modified to meet current building codes.
Demolition Cost Coverage: This provision handles the costs related to demolishing the undamaged parts of the building if rebuilding to current codes necessitates such action.
Increased Construction Costs: It addresses the extra construction expenses to ensure the new or repaired building adheres to the latest building codes and regulations.
Click here for additional insight on common property insurance exclusions.
The Vital Role of Ordinance or Law Coverage
Absent ordinance or law coverage, property owners may bear the financial burden of updating a damaged property to conform to new codes and regulations. This scenario is particularly prevalent in regions where building codes are rigorously updated for enhanced structural resilience against natural disasters.
Securing Comprehensive Coverage
To mitigate potential coverage gaps, property owners should:
Policy Review: Engage with your home insurance claim lawyer to meticulously review your insurance policy, understanding the scope of the ordinance or law coverage included.
Risk Evaluation: Consider the construction date of your property and the likelihood of significant code changes since then. Older properties might be more susceptible to non-compliance with current standards.
Coverage Expansion: Discuss with your property damage attorney the possibility of effectively augmenting your coverage to protect against ordinance or law compliance costs.
Conclusion
Understanding "what is ordinance or law coverage?" goes beyond mere curiosity—it's crucial for property owners to ensure comprehensive protection of their assets. As building standards evolve, adequate ordinance or law coverage ensures you're prepared to rebuild without unexpected out-of-pocket expenses.
Our experienced team of property insurance lawyers specialize in guiding property owners through their insurance coverage options, offering expert legal advice from experienced home insurance claim lawyers and property damage attorneys. If you're navigating the complexities of ordinance or law coverage or require assistance with a property insurance claim, our dedicated attorneys are here to protect your rights and secure your investment. Click the link below to schedule your free consultation with one of our property insurance lawyers.
