If your building burned down, you might have to rebuild it to comply with new (and oftentimes pricey) building codes. Have you ever considered how you’d finance those additional expenses? (Keep in mind that business property coverage does not cover any upgrades required to comply with building codes.)
Luckily, there’s an endorsement that can help. It’s called Ordinance (or Law) coverage, and it takes care of the extra costs involved in rebuilding a structure that must comply with ordinances or any other legal requirements related to constructing or repairing damaged buildings.
Such situations are most common in buildings that are 25 or more years old. They’re also sometimes extensive being that just some of the required upgrades could include wheelchair ramps, sprinkler systems, plumbing and electrical upgrades, and new HVAC systems.
What’s more, the International Risk Management Institute (IRMI) reports that many communities’ building ordinances require a partially damaged building–in many cases, one that is just 50 percent damaged–to be completely demolished and rebuilt to comply with newer building codes.
An Ordinance Endorsement will cover the costs involved in demolishing a partially damaged building in addition to any costs to rebuild to code, subject to applicable limits that can be tailored to fit your needs. Please contact CNR Insurance if you have any questions about this coverage.