Ordinance or Law insurance provides coverage for loss caused by enforcement of ordinances or laws regulating construction and repair of damaged buildings in Maryland and Virginia,
These older structures may be damaged and will need upgraded electrical, heating, air-conditioning (HVAC) and plumbing units based on these codes. Many communities have building ordinances requiring that a building that has been damaged, typically 50 percent, must be demolished and rebuilt in accordance with current building codes.
The standard commercial property insurance forms do not cover the loss of the undamaged portion of the building, the cost of demolishing that undamaged portion of the building, or the increased cost of rebuilding the entire structure in accordance with current building codes. You will need to obtain the Ordinance or Law endorsement to your policy. This endorsement should contain all 3 coverage parts shown below:
COVERAGE A UNDAMAGED PORTION OF BUILDING
COVERAGE B DEMOLITION COST
COVERAGE C INCREASED COST OF CONSTRUCTION
Not sure if you have this coverage? Let us review your policies. We can help you through this process. Contact us at https://www.insurance-financial.net/business-insurance/