Building Code Ordinance Insurance Coverage
If you or your client have an older multi-family property, it was built to be compliant with the codes of that time and may not be compliant with current codes and ordinance or law changes.
If your or your clients’ building suffers a loss or damage, it may now be required for the building to comply with current codes and ordinances during the reconstruction. Basic insurance policies may not cover the expense of bringing the building up to current code and would come directly out of your or your clients’ pocket.
However, if your insurance policy includes Building Code Ordinance Coverage, (also known as “Ordinance of Law Insurance” and “Code Upgrade Insurance”) the building may be covered for the increased costs of construction to bring it up to current code.
If you think this could be of interest to you, I have included a link HERE to give you more information.
Ask the insurance agent if building’s policy offers it or if it would be a good idea include on the investment properties.
As you know, the time to find out what your insurance won’t cover is before the time you need to use it.
** Please note, I am not an insurance agent and do not have any ties with insurance agents. This is only to have a conversation started with your insurance agent about what you may want to include in your investment property insurance coverage.