Ordinance or Law--Claims

[North Texas Agent]

Any agents have a working knowledge of ordinance or law claims; perhaps an example or two you can share?

What limit of ordinance or law limit do you add to your homeowners’ policies?

 

[adjusterjack]

There is no one answer to that question because (as you may be aware) there are a variety of policy forms that differ from company to company. Even the ISO standard forms differ from edition to edition.

Homeowner insurance provides Additional Coverage for Ordinance or Law. You should be able to imagine examples just by reading what is covered. At the very least, it covers upgrades required by current code compliance.

The standard ISO homeowners form provides an additional 10% of Coverage A Dwelling to apply to Ordinance or Law requirements.

On a $500,000 Dwelling limit, for example, that's an additional $50,000 for code upgrades.

Maybe not enough for a complete rebuild so there are likely increased limits endorsements available.

I won't quote the coverage because a homeowners policy booklet should be readily available to you.

You might gain some insight from the resources in the following search results.

ordinance or law coverage at DuckDuckGo

DuckDuckGo. Privacy, Simplified.

duckduckgo.com

 

[North Texas Agent]

FYI... I am familiar with the coverage. Just looking for agents that may have a story to share in regards to this coverage.

 

[Policy Monkey]

Here's an example I use with clients:

"Mr. Customer, let's say a storm came through and damaged 30% of your roof. The insurance company might say "If the damage is under 33%, we only pay to repair". But then the city comes in and says "If it's over 25% damaged, you must replace the whole roof". O&L would cover the difference between the paid repair and the required replacement. Without O&L, the price difference would be on you, Mr. Customer."

 

[Al3x Lee]

@adjusterjack is a national treasure that must be protected

 

[adjusterjack]

Another example. Fire damage to your 100 amp service panel. Code requires a 200 amp service panel to replace it.

Beyond that, almost any kind of electrical issue may require a code upgrade.

Back to the roof for another example. Many places ban wood shake shingles. That's another code requirement to pay for.

@adjusterjack is a national treasure that must be protected

Thanks, But I won't rely on the Secret Service. LOL.