Burned Commercial BuildingOwning any type of business property means you are assuming the risk that your property may eventually sustain damages of some type(s), by either fire or some other covered peril, and when it does happen, you need to be aware of some pertinent facts.  The damages may be so severe that you may need to restore or rebuild your damaged building; however, you may encounter some obstacles if aren’t aware of various government laws and/or ordinances that might govern repairs/restoration to your damaged building.  Find out when Ordinance or Law Insurance Coverage is critical.

Imagine that you own an electric company that is severely damaged in a fire, resulting in substantial damages that require a total restoration of your building.  Your building is in a prime location for your business needs and without knowing any evident obstacles, you make plans to start the process, but it comes to a screeching halt when you find out that there are various ordinances and laws that “control” the restoration of your property.

The restoration of your property may mean one thing to you; however, it may mean something more involved to the state and/or local government.  Their governing laws dictate what you MUST do in the renovation process and this could prove to be quite costly.  This is where you, as a business owner, should consider Ordinance or Law Coverage.

Some Challenges You May Face

Because the state and local governments have regulations that control the restoration of property and land use requirement, you may be faced with issues concerning the following, but not limited to:

  • Demolition of Damaged and Undamaged Property
  • Electricity Upgrade
  • Plumbing Upgrade
  • Debris Removal
  • Heating Renovation
  • Limitations on Coverage or Specific Exclusions

If you are a business owner, especially with an older property in need of upgrades, coverage for Ordinance or Law Insurance should be seriously contemplated.

The Endorsement for Ordinance or Law Coverage Includes: 

The endorsement comes at a nominal fee in exchange for the peace of mind you will receive knowing that if your building is damaged or destroyed, you will be adequately protected within the guidelines established by the state and local governments.  Below are the coverages included in the endorsement: 

  • Diminished value of the undamaged portion of the building that must be demolished in order to fulfill the ordinance
  • Incurred costs of demolition/debris removal of the undamaged portion of the building to fulfill the law
  • Increased costs to repair or rebuild the damaged structure/the cost to renovate or upgrade undamaged areas of the structure in accordance with the ordinance or law

Ease Your Mind With This Endorsement

As a business owner, you must be aware of the multitude of risks involving your business and business property.  Facing any covered loss to your building can be stressful and financially draining, especially if you don’t have Ordinance or Law Coverage and are faced with the governing laws that dictates the entire renovation of your building.  Paramount Insurance Agency understands your needs as a business owner and can assist you with any questions you may have regarding this endorsement and how it may be critical to your business.  Call us TODAY at 866-869-3335 and we can assist you with any of your N.C. commercial insurance needs.