3 Steps to Make Sure Your Home Insurance is Up to Code

October 31st, 2008 by

Brad C

Building codes change constantly. If your home is ten years old, it probably does not meet current codes; in fact, with all the latest “green” code changes, it’s possible that your home won’t make it even if it is just five years old. That means if something happens to your home, you’ll be required to bring it up to code when you repair it. Is your home insurance policy big enough to cover that?

Most policies do include an amount to bring homes up to code in the event of a claim, but frequently this isn’t enough. That’s because in addition to rebuilding whatever was damaged, you may actually have to tear down an undamaged part of your house to bring the entire dwelling up to code.

Both the expense of demolition as well as the cost of rebuilding would need to come from that portion of your policy. Any shortages must come out of YOUR pocket.

What’s a homeowner to do?

There is a way to make sure you are covered. It’s called the Ordinance of Law Increased Amount of Coverage Endorsement. This endorsement makes sure that if extra work has to be done on your home to bring it up to the latest building code, the insurance company is the one who pays.

There are several different levels of coverage and of course the more coverage, the higher the cost. But not having this coverage can cost you a fortune if something happens to your home.

With a few phone calls you can find out whether you have enough protection. Just follow these steps.

Call your insurance agent and find out how much coverage you have towards bringing any repairs up to code.
Contact the code department in your town to see what new codes have become law since your home was built.
Talk with a local builder to find out what it would cost to implement those new codes while rebuilding your home after an incident.
Compare the cost with your coverage level – is it enough?

This endorsement may have a different name in your state, but your home insurance agent is sure to have something available that gives you this coverage.