Ordinance or Law Exclusion
Understanding the ‘Ordinance or Law Exclusion’
What is Ordinance or Law?
The enforcement of any ordinance or law regulating the construction, repair or demolition of a building or structure. This is also known as building codes & zoning laws.
What is the Ordinance or Law EXCLUSION?
A homeowners or dwelling property policy usually does NOT cover, or covers in a very limited way, any loss caused by the enforcement of a law or an ordinance that regulates the construction, demolition, or repair of a building or structure. This is known as the “Ordinance or Law Exclusion."
Why is this Important?
A structure has to comply with the building code that was in effect when it was first constructed UNLESS the building is significantly remodeled, destroyed, or damaged. Should the structure be severely damaged by a hurricane and if this exclusion is not removed, the customer would be responsible for these significant costs related to bringing the structure up to current building codes during repair or replacement.
How can HHG enhance a Customers Coverage?
Hawaiian Hurricane Group automatically mitigates the ‘Ordinance or Law’ exclusion. This means that our coverage includes the cost of bringing your home up to code & protects you from what may be a significant gap in coverage & extra expenses should you suffer a loss up to the policy limits. In Hawaii, most current building codes were adopted between 2007 & 2011. If required by your county of residence, these current codes state that if your home is damaged 25% or more, all repairs must be up to code. If over 50% is damaged, the entire home must be brought up to code, even those areas that are not damaged.
Protect your Home! The cost of bringing your home up to current building code could cost you up to 30% of the repairs, or more! More importantly, these costs would be in addition to your deductible if the Ordinance or Law exclusion is not mitigated. The older the home, the more these requirements are likely to cost! Other insurance policies will not mitigate the Ordinance or Law exclusion or do so in a limited way, and often with additional premium. This means that despite carrying full replacement cost coverage, if this exclusion is not mitigated, you could be left with significant additional costs. This is expensive!!!
*HHG encourages everyone to review their current insurance policy ‘Ordinance or Law Exclusion’ language carefully.