One of the major components of a West Hollywood property owner’s insurance policy is the inclusion of Building Ordinance Insurance or Law insurance. This coverage is sometimes overlooked even by those who have been in the insurance industry for many years.
From the point in time, when a building is constructed to the point where a loss occurs, there can be tremendous changes in the local, state, or federal laws that govern building codes. Probably the most well known of these West Hollywood codes is to become compliant to code required under the Americans with Disabilities Act or ADA. Special exit and entrance ramps, handrails, or even designated handicap parking spaces can add thousands of dollars to the reconstruction of the building. Compliance with this not only takes up extra time in getting the building and business back up and running, but it can cost a tremendous amount of money that was not taken into consideration at the time the limit of coverage for the building was agreed upon. Recently an ordinance was passed in Los Angeles County, mandating that all newly constructed homes are to be sprinklered. In the event of a loss, the cost to be compliant with this recently passed initiative will add thousands to your cost to rebuild the property.
Components to Building Ordinance Insurance in West Hollywood
West Hollywood commercial property owners who currently have or need to buy property insurance coverage should be aware that there are three components to Building Ordinance Insurance or Law Coverage.
Coverage A provides coverage for loss to the undamaged portion of the building. It pays for the loss of value of the undamaged portion of the building that has to be taken down due to the building code or ordinance imposed following a covered loss. This, in effect, creates a total loss of your building. Since the building no longer meets code, it must be torn down or demolished and re-built to code.
Coverage B pays for the cost to demolish and remove the undamaged portions of the building; however, the destruction must be due to the building code or ordinance imposed following a covered loss. Here is where the real trouble begins. This is usually the most costly of building ordinance coverage.
Coverage C provides for the increased costs incurred to repair or rebuild the property to comply with current ordinance or laws. There is no real tried and true formula to determine an adequate amount of Building Ordinance Insurance for this particular loss.
During the process of purchasing West Hollywood property insurance, it should be determined if Coverage A, B, and C are included in your policy and if the limits are adequate. Professional appraisals are always recommended and should be updated on a regular basis. This keeps you apprised of ever-changing current laws and ordinances as they will relate to you if you sustain a loss.
Get Building Ordinance Coverage from Makar Technique Insurance
No matter what type of West Hollywood property you own, you should always consult with a professional independent agent when it comes to buying property insurance. Contact the professional agents of Makar Technique Insurance to get the perfect Building Ordinance Coverage based on your needs and budget.