Are You Safe Without Ordinance or Law Coverage?

Don Allan

Don Allan

By: Don Allan, Agent Relations Manager

We see evidence of it every day - the cost of living is on the rise. Whether it’s groceries, gas, clothing or any other everyday item we need, evidence of rising prices is where, and with that, the cost of materials and products are also on the rise. Since it costs more to fuel trucks, the transportation cost goes up, and consumers feel the results of those rising prices when products finally make it to the shelves.

Before I ventured into the insurance industry, I spent the previous decade working as a contractor. The one thing I can say never changed during those 10-years was the rising of building costs. 

Take the price of a pine 2x4 for example. This basic use of most residential structures has almost tripled in price during that time. Prices of everything, all the way up to the asphalt shingles commonly used today to roof your home have risen, forcing contractors to raise their bid which doesn’t leave much of a profit margin to then pay their employees.

demolished brownstone building

demolished brownstone building

Another issue is the fact that Massachusetts leads the nation in the amount of changes they make every year to their building codes. There are a couple reasons for this. Firstly, we are actually behind the rest of the country when it comes to how we build today. The main reason for this lack of progress is because we are home to some of the oldest structures in America so that creates many more concerns when renovating. But when building codes change, so does the cost to meet those codes.

So what happens when you have a serious insurance claim on a 130-year old structure? Will your increased cost of construction be covered? What about the demolition of the rest of the structure should the local inspector deem the building inhabitable?

Ordinance or law coverage added to your homeowners or master policy will cover these bases. It is a three part endorsement that reimburses for the loss to the undamaged portion of the building, increased cost of demolition and increased cost of construction.

As little as it costs to add this endorsement to your policy, it will save you thousands in the long run should your building suffer a catastrophe. And lets face it, the cost of living is not getting cheaper anytime soon!

Inquire about adding ordinance or law coverage to your policy today, or contact a Brownstone Insurance underwriter for a free coverage evaluation by calling (617) 236-6400 or emailing