While it's important to know what it would cost to rebuild your home from the ground up, other factors — such as compliance with the latest building codes — may affect the final construction outcome.
The replacement cost of your home is generally an effective yardstick to determine the amount of coverage you need. And while it may suffice in the way of rebuilding your home back to the way it was before a covered loss, you may be faced with new (and often costlier) building codes in your city or state. Luckily, if you opt for building codes coverage, your homeowners policy will help you pay for required code upgrades when repairing your home after a covered incident.
what is building codes coverage?
Building codes coverage is typically an optional protection in your home insurance policy. It can help pay for the costs needed to rebuild your home after a covered incident so that your residence complies with current building regulations. For instance, city ordinances sometimes require older homes to be rebuilt with upgraded electrical equipment, roofing materials, or plumbing systems.
In many places there are also laws that require buildings with at least 50 percent damage to be demolished and rebuilt to satisfy local building codes. Florida and South Carolina are prominent examples of states that have stringent regulations in place that significantly affect the rebuilding process of damaged homes.
As safety building innovations continue to evolve, so too will building codes in order to reflect those advancements. That means the older your home is, the more susceptible it is to the enforcement of building upgrades. Luckily, building codes coverage extends to demolitions, renovations, remodeling, and replacement, as well as repairs to damaged or undamaged portions of your home or other structures on your property — provided they're in the service of meeting local codes.
why building codes coverage is important
Let's say a tree is uprooted by a windstorm and crashes through your roof into the living room. But to repair your roof, you're required by the city to outfit your shingles with hurricane straps. These additions alone may increase the repair costs substantially — and without extended dwelling coverage, you'd probably have to pay for them out of pocket.
Many homeowners insurance companies — including Esurance — allow you to set your building ordinance coverage limit up to 20 percent of your dwelling protection. That means, if the dwelling coverage on your home is $100,000, then you'd be covered up to $20,000 for any building code requirements.
when building codes coverage may not apply
There are some local enforcements for which building ordinance insurance may not kick in, particularly if the maintenance involves normal upkeep on the part of the homeowner. For instance, building codes protection may not cover the costs needed to repair dry rot, or remediate mold or fungus if mandated by local laws.
In addition, ordinance or law coverage may not apply if there are any local laws requiring your home to be tested for pollutants or contaminants or if you were required to meet local building codes before any damage occurred.
get protected on all fronts with homeowners insurance from esurance
The worst possible moment to learn about coverage limits on your homeowners policy is after disaster strikes. For this reason, you want to ensure your home and family is adequately protected so that there are no unwanted surprises down the road.
You can check out all the perks of joining the Esurance family when you get your quick, free homeowners insurance quote online or by giving one of our agents a call today at 1-800-378-ESURANCE (1-800-378-7262), where they're available to help at these times.
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