Ordinance & Law Coverage in Washington
Building codes and local ordinances can change over time. When an older building is damaged, repairs or reconstruction may need to meet current codes rather than the standards that were in place when the property was originally built. This can create additional costs that property owners may not anticipate.
Ordinance and law coverage is designed to address certain expenses that can arise when building codes, ordinances, or laws affect the repair or reconstruction of damaged property.
What Is Ordinance & Law Coverage?
Ordinance and law coverage generally refers to insurance that may address certain costs associated with complying with current building codes or ordinances following a covered loss.
Standard property insurance and ordinance and law coverage can address different types of expenses. The availability and scope of coverage depend on the specific policy, endorsements, limits, exclusions, and circumstances surrounding a loss.
Why Can Building Codes Affect Reconstruction Costs?
Building standards can change significantly during the life of a property. Older buildings may have electrical, plumbing, structural, accessibility, fire protection, or other systems that no longer meet current requirements.
When significant repairs or reconstruction are necessary, applicable codes may require portions of the property to be updated. Depending on the circumstances, this can increase the overall cost or complexity of a project.
Potential considerations can include:
- Updated electrical or plumbing requirements
- Structural or seismic standards
- Fire and life safety requirements
- Accessibility requirements
- Energy-efficiency standards
- Demolition or reconstruction requirements
- Other applicable building codes and ordinances
The requirements that apply to a particular property depend on its location, age, construction, use, and applicable regulations.
Who Should Consider Ordinance & Law Coverage?
Owners of many types of commercial properties may want to consider how changes in building codes could affect them following significant property damage.
This may be particularly relevant for owners of older buildings or properties that have not been substantially renovated in many years. However, even newer properties can be affected as codes and regulations continue to evolve.
Understanding Your Property’s Risks
The potential impact of an ordinance or building code can vary considerably from one property to another. Property owners may want to consider the age and construction of their buildings, local requirements, previous renovations, and the potential cost of bringing damaged property into compliance with current standards.
An insurance professional can help explain available ordinance and law coverage options and how they may fit within a broader commercial property insurance program.
Learn More About Ordinance & Law Coverage
Changes in building codes can create additional considerations when repairing or rebuilding commercial property. Understanding these risks can help property owners make more informed decisions about their insurance.
Reviewing ordinance and law coverage with an experienced insurance professional can help clarify available options, limits, exclusions, and other policy considerations.
