Ordinance or Law Insurance CoverageIf you are a business owner, you must be prepared to face certain challenges when they occur.  As you know, accidents can and do happen and you must be prepared to move forward when facing damages to your commercial property caused by a covered peril, such as wind, hail, or fire.  Without the right type of Alabama business insurance protection, you may be jeopardizing your financial standing in addition to everything you worked hard to get. If you are an owner of aging Alabama business property, you may want to consider purchasing Ordinance or Law Coverage.

Imagine your property getting damaged by a fire and you have plans to repair or replace specific things; however, your plans are quickly put to rest due to state laws of which you weren’t quite aware.  You realize the damaged property needs to be replaced and/or repaired, while some parts require demolition.  What you may not realize is there are state and local governments that enforce laws and ordinances that may control the reconstruction, restoration, and demolition process of your property. This is where business owners, especially those owning older property, should consider Ordinance or Law Coverage.

What is Ordinance or Law Coverage?

The International Risk Management Institute defines Ordinance or Law Coverage as “Coverage for loss caused by enforcement of ordinances or laws regulating construction and repair of damaged buildings.”  So, in the above scenario, the damaged property may be required to have upgrades to plumbing, electrical, and HVAC, to name a few.  This coverage is beneficial to business owners, especially if they own older property with aging plumbing and electrical features.

For a nominal fee, this additional coverage can be added by endorsement and provides peace of mind for when covered losses happen.  After all, knowing you have the protection you need and deserve is priceless. When a covered loss happens to your building property, it is essential to know there may be certain standards/requirements established by the state and local government when it comes to restoration or repairs to your property.  Below are some key features in the Ordinance or Law Coverage. It provides coverage for:

  1. Increased expenses to upgrade and/or replace undamaged structures (such as electrical, plumbing or HVAC) established within the guidelines of local ordinance or law.
  2. Expenses associated with demolition of the undamaged property, to include debris removal, while adhering to all legalities established by the local ordinance or law.
  3. Increased expenses to repair or restore the damaged property.
  4. Reduction in value to the undamaged portion of the property that must be demolished to satisfy the regulations established by the state or local ordinance.

Repairing, restoring, or demolishing of buildings can be challenging for business owners especially when trying to stay within the various codes and ordinances outlined by local and state governments.  This is why Ordinance or Law Coverage can be beneficial when dealing with exposures involving older property.  Consider buying this coverage now before a covered loss strikes.  If you have any further questions or concerns about this endorsement, call our offices at Burkett & Associates and we will assist you.  We are here for all your Alabama business insurance needs.  Don’t wait! Call today at 256-704-7400.