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 While fixing undamaged (but outdated) components of a house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.
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