Why do most customers have a general idea of what their Home insurance covers? Most don’t understand covered perils and how the claim is handled. I don’t understand many things under the hood of my car that the mechanic does. Ordinance and law coverage is one of them.
One of our clients in Winter Haven, Florida, had a kitchen fire recently. They deemed the house was over 40% damaged because it was not built to code. The county requires it to be removed and rebuilt from the ground up. The undamaged portion of the structure has to be torn down and rebuilt due to a change in municipal codes. This is where the ordinance of law coverage comes into play.
Typically your policy comes with a percentage. A lot of times, it is 10% of the structure value, in some cases, you can increase the percentage for a fee.
Ordinance of law coverage is designed to pay for:
I would suggest becoming familiar with local and state zoning laws. You can contact the zoning board and ask the questions such as:
At Lock Insurance, we always recommend this coverage and stress on older homes. Contact us today so we can review your current policy to make sure you have the correct information so you can make a wise decision once the claim happens. It’s too late to review your policy and implement the changes.
Don Westerfeld has been active in the field of Insurance and Financial Planning since 1997. Don grew up in Indiana later moving to Lakeland Florida where he continues to reside with his wife and children. When he’s not in the office you can find him enjoying the great outdoors. He has served on several charitable business and non-profit organizations and continues to provide guidance, advice and support to local charities.
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