Do you own property in southeast Florida? If you do, you most likely have some form of property insurance. But just how much insurance do you actually have? And how much do you actually need? What coverages are important? Where are you most likely to have a loss? All of these are valid questions as it relates to your insurable property. In 45+ years of insuring property in southeast Florida, we have found no more important property coverage than Building Ordinance or Law.
If you have a loss, your standard property insurance policy replaces the damaged property with the same or similar property. However, if a structure was built a number of years ago, building a similar structure as a replacement may not satisfy todays regulations. Building a new structure that meets modern environmental standards, and standards for protection against disasters such as hurricanes, will cost additional money, which Building Ordinance or Law Coverage provides.
The South Florida Building Code stipulates that if a building is damaged by 50% or more, the remaining portion may have to be torn down. If a roof is damaged by 25% or more, the remaining section may have to be torn down. The new building must then be rebuilt to current codes. Building Ordinance or Law is where the insurance company will find coverage for this type of loss.
There are 3 separate and distinct sections that make up this coverage:
Coverage A – Undamaged Portion of Building; Covers the cost to rebuild the undamaged portion to new standards.
Coverage B – Demolition Coverage; Covers the cost to tear down and remove the remaining undamaged portion of the building.
Coverage C – Increased Cost of Construction; Covers the additional cost of upgrading the new property to present building codes.
With hurricane season coming up you don’t want to leave any gaps as it relates to your property insurance. Are you properly insured? Talk to your insurance consultant today to find out!
Written by Robbie Korth
If you have any questions, please feel free to contact Robbie Korth at firstname.lastname@example.org.