What is Law and Ordinance?

Let's say a storm causes flying debris to break windows in your home, insurance should pay for its repair or replacement.  What happens when the local building inspector comes in after the storm, and requires full replacement of all the obsolete windows with impact glass to meet the a local building code?   The owner has no choice but to replace tall he windows—even those that are not broken.  While fixing undamaged (but outdated) components of a house aren’t insured under a standard property policy, there is a solution.

The Ordinance or Law endorsement provides additional funds, commonly up to 10% of your Dwelling A, for costs due to the enforcement of any ordinance or law which requires or regulates. 

Some insurance companies include 10% - 25% Law and Ordinance in their standard HO3 policy.  Others offer Law and Ordinance as an endorsement.  Those that include 10% will likely allow you to upgrade to 25% as an endorsement.

We will likely continue to live with always changing building codes, it’s a good idea to buy at least 10% Law and Ordinance.  If you own an older home (pre-2002), it’s highly advised to have 25% Law and Ordinance.

Lenders are an "Additional Insured"

Mortgage lenders mandate to be listed as mortgagee or an additional insured on every homeowner’s policy.  This is a relatively simple process that begins with the homeowner contacting their mortgagee/lender and requesting that their insurance agent is provided the exact instructions for how the mortgagee/lender wants to appear on the policy.  Most lenders fax their requests to the insurance agency versus email or call. 

When refinancing, it is very important to contact your new lender to provide them with my fax number to send their additional insured request.  My fax number is 888-267-9143.

Flood Insurance

Presently, most flood insurance is provided by the National Flood Insurance Program (NFIP).  This program is administered by The Federal Emergency Management Agency (FEMA) and underwritten by many insurance companies on behalf of FEMA.  In addition to the NFIP, there are also private flood insurers.

Flood insurance is pretty simple.  You can insure a home (building) up to $250,000 – this is the maximum under the NFIP.  The maximum for contents is $100,000.  These cap amounts can be exceeded with private flood insurance. 

The NFIP charges an additional $250 annually for non-residents (secondary/seasonal) homeowners.

If you require flood insurance, give me a call so that I can provide you with the optimal quote for your home.  As always, my goal is the best coverage for the least amount!

What Flood Zone am I in?

ZONE VE:  Areas subject to inundation by the 1-percent-annual-chance flood event with additional hazards due to storm-induced velocity wave action. Base Flood Elevations (BFEs) are derived from detailed hydraulic analyses. Mandatory flood insurance purchase requirements and floodplain management standards apply.

ZONE AE:  Areas subject to inundation by the 1-percent-annual-chance flood event determined by detailed methods. Base Flood Elevations are created. Mandatory flood insurance purchase requirements and floodplain management standards apply.

ZONE AH:  Areas subject to inundation by 1-percent-annual-chance shallow flooding (usually areas of ponding) where average depths are between 1 and 3 feet. Base Flood Elevations are derived from detailed hydraulic analyses for this zone. Mandatory flood insurance purchase requirements and floodplain management standards apply.

ZONE A:  Areas subject to inundation by the 1-percent-annual-chance flood event and generally determined using approximate methodologies. Because detailed hydraulic analyses have not been performed, no BFEs or flood depths are created. Mandatory flood insurance purchase requirements and floodplain management standards apply.

ZONE X500:  Zone X500 is a moderate flood hazard area and is an area between the limits of the base flood and the 0.2-percent-annual-chance (or 500-year) flood. Mandatory flood insurance is not required.

ZONE X:  Zone X is the flood insurance rate zone used for areas outside the 0.2-percent-annual-chance floodplain. This zone is outside of the 500-year floodplain. No BFEs or depths are created for this zone and flood insurance is not required.

Most local county governments publish FEMA flood maps on their websites.  CLICK for flood zone maps