If the Government (County, State, Federal or HISTORICAL District) has instituted new construction codes since the day your building was originally built, and your building suffers an insurance claim….are you covered for the extra costs to rebuild to the new building codes?
Your policy is designed to rebuild the building as it sits today with like kind and quality. However, you can purchase extra insurance called Building Ordinance Coverage to pay for the additional costs of bringing the building into compliance with the new construction codes. For example, if your building does not have a sprinkler system and now would be required to have one, the insurance policy can cover the added cost if you are covered.
Please call or meet with the insurance advisors in our office to discuss this important issue. Almost all historical districts and local governments have revamped the building codes; therefore this coverage is essential.