Archives: 2017

Exclusions in Business Insurance Policies: What’s Not Covered?

When purchasing business insurance, many policyholders focus on what is covered. But just as important is understanding what is not. These uncovered situations, known as exclusions, can leave your business vulnerable if you’re not careful. Knowing how exclusions work can help you choose smarter coverage and avoid costly surprises.

What “Exclusion” Actually Means

An exclusion is any situation, condition, or type of damage your insurance policy states are not covered. These clauses are in the fine print of your policy. They are essential for understanding your actual level of insurance protection. Exclusions exist to limit the insurer’s risk, clarify the scope of coverage, and often reduce premium costs. Failing to account for exclusions can result in denied claims when you need help most.

Common Exclusions

Most business insurance policies include several standard exclusions. These can include:

• Wear and tear: Damage from normal use over time is usually not covered.
• Intentional acts: Deliberate damage or criminal activity by the business owner or employees is typically excluded from coverage.
• Cyber incidents: Many standard policies do not include coverage for data breaches, ransomware, or other cyber events unless cyber liability insurance is purchased separately.
• Contract disputes: Breaches of contract are generally excluded unless specifically addressed with endorsements.

These exclusions can affect general liability, commercial property, and even professional liability policies. Always read the exclusions section to understand the limitations of your coverage.

Industry-Specific Exclusions to Watch For

Some exclusions vary based on your industry. For example:

• Construction: Exclusions may apply to work performed by subcontractors or damage resulting from poor craft.
• Healthcare: Claims related to malpractice or HIPAA violations often require specialized medical liability coverage.
• Retail: Shoplifting losses or customer data breaches may be excluded unless specifically covered in the policy.
• Technology: General business policies may not cover errors and omissions in software development or system implementation.

Every industry has unique risks, and your policy must be tailored to address them.

Riders and Endorsements Explained

Fortunately, many exclusions can be addressed through riders or endorsements. These are policy add-ons that provide additional protection for risks not included in a standard policy. For instance:

• A cyber liability endorsement can help cover expenses related to data breaches.
• A contractual liability rider can extend coverage to specific agreements.
• A pollution endorsement may cover environmental damage, which is often excluded from standard policies.

Ask your insurance provider about available riders that may help close critical gaps in your coverage.

The Fine Print Checklist: Questions to Ask Your Broker

When reviewing your business insurance, consider asking:

• What exclusions apply to each policy I hold?
• Are there any risks in my industry that are not covered by this policy?
• What riders or endorsements can I add?
• Are there bundled options that better suit my business?
• Can you provide examples of claims that would be denied under this policy?

These questions can help you uncover coverage limitations and make informed decisions.

Build Smarter Coverage for Your Business

Don’t let hidden exclusions derail your protection. Our agency can help you identify potential gaps and build a policy that fits your business needs. Contact us at VanScoter Insurance Agency to schedule a review of your current business insurance and ensure you’re protected where it counts most.

When the Road to Your Business is Blocked—Will Insurance Cover Your Lost Income?

A recent incident on Lehigh Station Road, where a vehicle struck a utility pole and prompted police to block off the area, raises an important question for local business owners: What happens when access to your business is suddenly restricted? Can your insurance policy help recover lost income?

The answer is: it depends. Here’s what business owners need to understand about business income coverage and what situations may or may not be covered.

The Two Keys: Coverage and Trigger

To potentially recover lost business income under your insurance policy, two conditions must be met:

1. Your policy must include Business Income (or Loss of Income) coverage.
   This coverage is not automatic and must be specifically added to your commercial policy.
2. There must be a covered trigger—such as a “Civil Authority” action.
   Civil Authority coverage applies when access to your premises is restricted by a government entity (e.g., police or fire department) due to damage occurring nearby. In the case of a road being blocked after an accident, this could potentially qualify.

Important Limitation: The 72-Hour Waiting Period

Even if coverage applies, most business income policies include a 72-hour waiting period (also known as a time deductible). This means the disruption must last longer than three full days before any benefits are paid. In many cases—such as utility repairs—the interruption may be resolved before this deductible period ends, resulting in no payout.

Power Outages and Utility Failures

Businesses that rely on electricity or other utilities to operate—such as manufacturers, restaurants, or service-based businesses—may face income loss even if their property isn’t directly damaged.

Off-Premises Utility Failure coverage may provide protection in these situations, but like business income coverage, it must be added to the policy and is also typically subject to a 72-hour time deductible.

Action Steps for Business Owners

To avoid financial surprises in the event of a disruption, business owners should:

• Review their current policy to confirm whether business income and utility failure coverage are included.
• Understand the conditions and exclusions of Civil Authority coverage.
• Consider policy enhancements or endorsements to better protect against short-term shutdowns.
• Discuss deductible options and waiting periods with their insurance advisor.

VanScoter Insurance Agency works closely with local business owners to ensure their coverage is aligned with real-world risks. With decades of experience serving the Greece and Rochester, NY communities, we’re here to help you evaluate your policy and prepare for the unexpected.

Looking for help reviewing your business insurance coverage? Contact us today to schedule a consultation.

Managing Premiums: Tips for Getting Lower Personal Insurance Rates

Insurance is vital to protecting the value of your home, car, and other personal assets. That doesn’t mean that the premiums should break the bank! Whether you’re trying to lower your monthly expenses or want to ensure good value, understanding what drives the cost of your premiums is the first step. Let’s take a closer look at how personal insurance rates are calculated and what you can do to keep costs in check.

What Goes Into Your Insurance Costs

Several key factors influence the cost of your personal insurance. While the exact formula varies by provider and policy type, insurers evaluate the following factors:

• Age: Younger and older drivers often face higher auto insurance rates due to increased risk profiles. Homeowners of varying ages may also see rate variations.
• Location: Living in a neighborhood with higher crime rates or prone to weather-related incidents can increase premiums.
• Credit score: In many states, insurance companies use a credit-based insurance score in risk assessment. A lower score means higher premiums in many cases.
• Claims history: If you’ve filed multiple claims in recent years, insurers may view you as being a higher-risk client.
• Coverage limits: Choosing higher coverage amounts or additional insurance protection, such as personal liability insurance, increases premiums but provides higher levels of protection.

Being aware of these factors allows you to make informed decisions when purchasing insurance.

Combining Policies to Save More

Bundling policies is one of the easiest ways to reduce overall insurance costs. Many insurers offer multi-policy discounts when you combine auto, home, renters, or other personal insurance coverage. Aside from convenience, bundling can save you up to 25% in many cases. It is advised that you find out about options to include additional types of coverage, such as umbrella insurance or recreational vehicle insurance, to access more potential savings.

Deductibles and Your Bottom Line

Your deductible is what you will pay out of pocket before your insurance coverage kicks in. Choosing a higher deductible can result in a lower monthly premium. For example, increasing your auto insurance deductible from $500 to $1,000 could result in a 10% to 20% reduction in your premium. Ensure you are financially prepared to cover that higher amount if you need to file a claim.

How Your Score Impacts Your Rate

It may come as a surprise, but your credit score can play a significant role in determining your insurance rates. Insurers often use credit-based scores to evaluate risk. A higher score typically means lower premiums. If you want to improve your credit and potentially lower your insurance rates, consider these tips: pay bills on time, keep balances low on credit cards, and review your credit report regularly for errors.

Discounts You Might Be Missing

Many overlook discounts that could lead to real savings on their personal insurance. Here are a few to consider:

• Good driver discounts or savings for completing a defensive driving course
• Smart home features such as smoke detectors or water leak sensors
• Anti-theft devices installed in your vehicle
• Low annual mileage or participation in usage-based programs
• Loyalty or multi-year customer discounts

Your insurance agent can help you identify which discounts are currently available from reputable insurance providers that could help reduce the cost of your insurance policies.

Let’s Lower That Rate Together

If you’re looking for ways to trim your premiums without sacrificing coverage, our agency can help. At VanScoter Insurance Agency, we’ll walk you through options tailored to your lifestyle and budget—from bundling to policy reviews to unlocking every available discount. Let’s work together to find personal insurance coverage that protects what matters most at a price that makes sense. Give us a call at (585) 663-2004.

Understanding Insurance Coverage for Earthquakes and Tsunamis: What Is and Isn’t Included in Your Policy

Following the recent 8.8 magnitude earthquake near Russia and the resulting tsunami waves, questions about insurance coverage for such catastrophic events have understandably come to the forefront. As an independent insurance agency serving the Western New York community, we believe it is critical to clarify what a standard homeowners or commercial insurance policy does—and does not—cover in these situations.

Unfortunately, many policyholders assume they are protected against all forms of natural disaster. However, both earthquake and flood damage are typically excluded from most standard property insurance policies.

Flood Damage Is Not Covered by Standard Insurance

Flooding, including damage caused by tsunami waves or storm surge, is not covered under traditional homeowners or commercial property insurance. This is a common misconception that often only comes to light after a loss occurs.

To obtain protection against flood damage, individuals and businesses must purchase a separate flood insurance policy, either through the National Flood Insurance Program (NFIP) or a private insurer. It is important to note that most flood policies include a 30-day waiting period before coverage takes effect.

Earthquake Damage Is Also Excluded

Similarly, most property insurance policies exclude losses resulting from “earth movement,” a category that includes earthquakes, landslides, and other seismic activity. This exclusion applies even if the structure sustains direct damage from the earthquake prior to any flooding.

In areas like Western New York, where the risk of earthquakes is relatively low, earthquake coverage can often be added as an endorsement to an existing homeowners or business policy. In higher-risk regions, such as parts of California, earthquake coverage typically must be obtained through a separate standalone policy.

Recommendations for Policyholders

To ensure appropriate protection, we recommend the following:

1. Review your current insurance policies to understand what exclusions apply.
2. Consult with your agent about adding earthquake coverage as an endorsement if you are in a lower-risk area.
3. Consider purchasing flood insurance, especially if your property is near a body of water or located in a designated flood zone.
4. Be proactive—do not wait for a natural disaster to review or update your coverage.

Why Your Home Insurance Replacement Cost May Be Outdated—And What to Do About It

When was the last time you reviewed your home insurance policy? If it’s been more than five years, there’s a good chance the replacement cost listed in your policy isn’t keeping up with the times—and that could leave you underinsured when you need coverage most.

Real Talk from the Front Lines

Just this week, I sat down with a client to review his homeowners insurance. We took a hard look at the rebuilding costs for his home and realized they were significantly outdated. We ended up increasing his replacement cost by $100,000.

You might think, “Rhett, you’re just trying to raise my premium.”

Trust me, I get it. I don’t like paying more either. But here’s the kicker: that extra $100,000 in coverage only added $23 a year to his premium. That’s less than two bucks a month for a massive upgrade in protection.

Replacement Cost vs. Market Value

Let’s clear up a common misconception: the replacement cost of your home is not the same as its market value. Replacement cost refers to what it would actually take to rebuild your home from the ground up, using current materials and labor costs. Market value includes land and location and fluctuates with the housing market.

In short, if you’re basing your insurance coverage on market value, you might be missing the mark.

Inflation Is No Joke

Over the past few years, we’ve seen sharp increases in construction costs due to inflation, supply chain issues, and labor shortages. Lumber, roofing materials, plumbing supplies—you name it—they’re all more expensive than they were five years ago.

That means the cost to rebuild your home today is likely much higher than it was when you last reviewed your policy.

Why This Matters

If your coverage doesn’t reflect today’s rebuilding costs, you could be facing a major financial gap in the event of a loss. No one likes paying higher premiums, but what you definitely don’t want is finding out you’re underinsured after a fire or storm damage.

Take Action Today

Give your insurance agent a call—or if you’re in the Greece, NY area, give us a ring at VanScoter Insurance. We’ll walk you through a review of your current policy and make sure you have the coverage you need to fully rebuild, should the worst happen.

It doesn’t cost much to bring your policy up to date, but the peace of mind? That’s priceless.

Thinking About Renting Out Your Pool? Here’s Why It Might Not Be Worth the Risk

With summer in full swing, it’s no surprise that folks are looking for ways to cool off—and maybe make a little extra cash in the process. One trend that’s been making waves (pun intended) is homeowners renting out their backyard pools by the hour. Sites like Swimply make it easy: list your pool, set your price, and watch the bookings roll in.

Sounds like a no-brainer, right? I mean, if you’re not using the pool 24/7, why not make a few bucks off it?

Well, I hate to be the party pooper here, but as your local insurance agent—and someone who’s been in this industry for over 20 years—I’ve got to give it to you straight: this is not a risk worth taking.

Your Homeowners Insurance Doesn’t Cover Business Use

The biggest misconception I see is people assuming their homeowners insurance will cover any accidents that happen on their property, no matter the situation. But here’s the thing: once you start charging money for people to use your pool, you’re running a business. And standard homeowners policies have very clear exclusions for business activities.

If someone gets hurt while swimming in your pool—even if it’s just a slip on the pool deck—you could be looking at a costly lawsuit. And if your insurance company finds out it happened during a paid rental? There’s a good chance they’ll deny the claim entirely.

That means you could be held personally responsible for medical bills, legal fees, and damages. Not to mention the potential for your policy to be canceled altogether.

Insurance Companies Don’t Love High-Risk Surprises

Insurance carriers like predictability and low risk. Strangers coming to your home, using your property, and engaging in potentially dangerous activities? That’s pretty much the opposite of what they want to see.

Even if you’re renting out a separate property, like a vacation home or Airbnb, hourly pool rentals add another layer of liability that most carriers aren’t comfortable with. It’s not just about coverage—it’s about how your insurance company views your overall risk profile.

What Should You Do Instead?

If you’re seriously considering renting out your pool—or any part of your property—for income, here are a few things to do first:

1. Call your insurance agent (that’s me!) – Let’s talk about what your policy actually covers and whether there are options for properly insuring this kind of activity.
2. Consider commercial liability insurance – This may provide coverage for business-related risks, but it comes at a higher premium and with more scrutiny.
3. Think long-term – Is the short-term cash worth the potential long-term headache?

A Friendly Word of Caution

Look, I get it. I’ve got four kids, I know how expensive summer can get—and the idea of turning your backyard into a side hustle is tempting. But as someone who’s spent two decades helping families protect what matters most, I’m here to say: don’t risk your financial future for a quick summer payout.

If you’ve got questions or want to review your current coverage, give us a call or stop by the office here in Greece, NY. We’re here to help you make smart, safe decisions for your home and your family.

Stay safe this summer—and keep the cannonballs in the family pool!

Drone Insurance: What Every Homeowner Needs to Know About Coverage

The Growing Drone Trend

Drones have become increasingly popular over the past few years, and it’s easy to see why. From capturing stunning aerial photography to providing hours of entertainment, these devices have found their way into many American households. Recently, this trend hit close to home when my son Jack spent weeks researching drones before finally deciding to purchase one with his own money.

But as an insurance professional, his new hobby immediately got me thinking about potential risks and coverage questions that many drone owners might not consider until it’s too late.

The Property Damage Question

Scenario: Your drone malfunctions or you lose control, and it crashes into your neighbor’s house, car, or other property. What happens next?

Good News: Your homeowners insurance liability coverage will typically respond to cover the property damage. This means if your drone puts a hole in your neighbor’s roof or dents their car, your homeowners policy should cover the repair costs. Even better, liability coverage typically doesn’t have a deductible, so you won’t be paying out of pocket for the damage.

This coverage falls under the personal liability portion of your homeowners policy, which is designed to protect you when you’re legally responsible for injury or damage to others.

The Privacy Lawsuit Risk

Here’s where things get more complicated. Let’s say your drone crashes into your neighbor’s property, and they’re already upset about the damage. Then they start thinking: “Why was this drone hovering over my house in the first place? Was it recording me and my family without permission?”

The Reality: Privacy concerns around drones are legitimate and growing. Your neighbor could potentially sue you for:

• Invasion of privacy
• Unauthorized recording or surveillance
• Harassment
• Emotional distress

The Coverage Gap: This is where many homeowners discover a critical gap in their coverage. Standard homeowners liability coverage typically covers bodily injury and property damage, but privacy violations fall under a different category called personal injury.

Understanding Personal Injury Protection

Personal Injury Protection (not to be confused with PIP auto coverage) is an additional coverage that can be added to your homeowners policy. It provides protection against lawsuits involving:

• Invasion of privacy
• Libel and slander
• False arrest or detention
• Malicious prosecution
• Wrongful eviction
• Discrimination

Critical Point: Personal Injury Protection is NOT automatically included in all homeowners policies. It’s often an optional coverage that must be specifically requested and purchased.

What Happens Without Personal Injury Protection?

If you don’t have Personal Injury Protection and your neighbor sues you for privacy violations related to your drone use, you could be facing:

• Legal defense costs (which can be substantial even if you win)
• Settlement or judgment costs if you lose
• No insurance company support throughout the legal process

Legal defense alone can cost thousands of dollars, even for frivolous lawsuits that you ultimately win.

Action Steps for Drone Owners

1. Review Your Current Policy

Contact your insurance agent to review your homeowners policy and verify whether you have Personal Injury Protection. Don’t assume it’s included – ask specifically.

2. Consider Adding Coverage

If you don’t have Personal Injury Protection, discuss adding it to your policy. The cost is typically modest compared to the potential exposure.

3. Understand Your Limits

Make sure your liability limits are adequate. Consider whether you need an umbrella policy for additional protection, especially if you have significant assets to protect.

4. Know the Rules

Familiarize yourself with local drone regulations and privacy laws. The best insurance is avoiding claims in the first place by operating your drone responsibly.

Beyond Homeowners: Other Drone Insurance Considerations

While homeowners insurance can provide important liability protection, consider these additional factors:

Physical Damage to Your Drone: Your homeowners policy may provide some coverage for your drone as personal property, but coverage limits and deductibles may make this less valuable for expensive drones.

Commercial Use: If you use your drone for any business purposes (real estate photography, inspections, etc.), your homeowners policy likely won’t cover commercial activities. You’ll need separate commercial drone insurance.

Specialized Drone Insurance: Some insurers offer specific drone insurance policies that can provide more comprehensive coverage than relying solely on your homeowners policy.

The Bottom Line

Drones can provide incredible enjoyment and utility, but they also come with real liability risks that many owners don’t consider. While your homeowners insurance provides important baseline protection for property damage, the growing concern around privacy violations means that Personal Injury Protection has become increasingly important for drone owners.

Don’t wait until after an incident to discover gaps in your coverage. Take the time now to review your policy and ensure you have appropriate protection in place.

Choosing Your Life Insurance Beneficiary

Selecting a beneficiary for your life insurance policy is a decision that demands careful consideration. As your choice determines who will receive the funds when you pass away, it is a critical factor in financial planning. The following information can help you make an informed decision.

What Is a Beneficiary?

A beneficiary is the person or entity you designate to receive the death benefit from your policy. You have the option to name multiple beneficiaries and specify the percentage of the payout each will receive. You can name individuals, trusts, charities, or even your estate as beneficiaries. The choice depends on your financial goals and the individuals you want to have financial support when you pass away. 

Beneficiaries fall into the following two main categories:

• Primary beneficiary: This is the first person in line to receive your life insurance death benefit.
• Contingent beneficiary: If the primary beneficiary dies before you or is unable to receive the payout, the funds will go to the contingent beneficiary. 

What Are the Key Considerations in Choosing a Beneficiary?

 The following information should be evaluated when you choose a beneficiary:

• Family dynamics: It is essential to consider family relationships and dynamics. If you have children from a previous marriage or dependents with special needs, your beneficiaries can be structured accordingly.
• Minor children: Until they reach the age of majority, minor children cannot directly receive a life insurance payout. If you have minor children you want to name as beneficiaries, a solution may be to set up a trust and name a trustee to manage the funds.
• Trusts as beneficiaries: Naming a trust as your beneficiary allows you to control how death benefits are used, even after you are gone. This may be particularly useful if you want to manage distributions over time or if your beneficiaries are minors or have special needs.
• Contingency planning: Always name a contingent beneficiary. If your primary beneficiary predeceases you or is unable to claim the death benefit, the proceeds will go to your contingent beneficiary instead of going through probate. 

What Are Some Common Mistakes?

The following are common mistakes to avoid when naming beneficiaries of a life insurance policy:

• Failing to update the policy: Major life changes, such as marriage, divorce, birth, or death, should prompt a review of your beneficiary designations. If they are outdated, the death benefit could go to someone you no longer intend to support.
• Vague designations: Avoid using terms such as “my spouse” or “my children” without specifically naming each person. Legal complications can arise from ambiguity in identifying beneficiaries.
• Naming your estate: If you name your estate as the beneficiary of your policy, the proceeds must go through probate. This can delay distribution and reduce the amount your loved ones receive.
• Ignoring tax implications: If your estate is substantial and the insurance payout is included in your estate, it could push the value over the federal estate tax exemption limit, triggering significant tax liability. An effective way to avoid this is to name an Irrevocable Life Insurance Trust (ILIT) as the beneficiary to exclude life insurance proceeds from your estate for tax purposes. An ILIT allows you to control distributions and avoid estate taxes on the policy’s value. 

For help with designating a beneficiary for your life insurance policy, speak with one of our helpful local agents at VanScoter Insurance Agency to guide you in this critical estate planning issue. Give us a call today at (585) 663-2004. 

Will My Homeowners Insurance Cover My Home Business?

Running a business from the comfort of your home is incredibly convenient, but it also raises questions about insurance coverage. While homeowners’ insurance can offer some protection, it may not fully cover home-based business activities. Understanding the limitations of your policy and exploring additional coverage options to help protect your business from unexpected losses.

What Are the Limitations of Homeowners Insurance?

A homeowners’ insurance policy is primarily designed to protect your home and personal belongings, not any business assets. While it may provide limited coverage for business property, the amount may be significantly capped. In addition, most homeowners’ policies do not include liability protection for business-related accidents. 

If a client or delivery person is injured on your property when you are conducting some facet of your business, it is likely that your homeowners’ insurance will refuse to cover the claim. This gap in coverage can leave you vulnerable to lawsuits and the risk of severe financial losses you will be forced to pay out of pocket. 

When Is Additional Coverage Necessary?

If your home business stores inventory, sees clients regularly, or uses costly equipment, you may need additional insurance coverage. The following are some options to consider:

Home Business Endorsement

This add-on to a homeowner’s policy extends coverage for business-related property and liability. While it offers more protection than standard homeowners insurance, it still has limitations, particularly for larger operations.

In-Home Business Policy

Designed for more comprehensive protection, an in-home business policy covers business property, provides liability coverage, and protects against loss of income and data breaches. This type of policy may be ideal for a smaller home-based business with low risk, small-scale operations, and little inventory or foot traffic. It provides more comprehensive coverage than a homeowners policy endorsement.

Business Owner’s Policy (BOP)

A BOP bundles commercial property insurance, general liability insurance, and business interruption coverage into one cost-effective package. It is more comprehensive than an in-home business policy. This may be the right option for a small to medium-sized home-based business with higher risks, more equipment, or more client interaction. For larger operations or a highly specialized business, you may need commercial business insurance that includes custom options, such as professional liability, cyber liability, or workers’ compensation. 

Is Liability a Major Concern?

Liability is one of the biggest risks for home-based business owners. If a person is injured while visiting your home for business purposes, your homeowners’ policy is unlikely to cover the medical costs or your legal fees. This risk is higher for businesses that host clients, such as consultants, tax preparers, and daycare service providers.

As a liability claim could lead to thousands of dollars in damages in addition to legal fees, it is important to secure adequate coverage. An endorsement on your homeowners policy or business liability insurance can help fill the gap to ensure you are protected from the financial fallout of an accident. 

Protecting Your Business Investments

Beyond liability, consider what you have invested in business equipment. Computers, cameras, and specialized equipment are high-value items that are not likely to be covered under a standard homeowners policy. Take inventory of your business assets and meet with our experienced agents at VanScoter Insurance Agency. We can help you determine if your business should have higher levels of insurance protection. Give us a call today at (585) 663-2004.

Why You Need Ordinance or Law Coverage on Your Building Insurance Policy

Recently, a church in Dansville, NY, made headlines after it partially collapsed and had to be demolished. While this was already a tragic and expensive loss, what made the situation even more difficult was that the entire building had to be torn down — even though only part of it collapsed. Why? Because local building code required it.

This event is a real-world example of a question we hear from clients all the time:

“Why do I need to insure my building for 100% of its value? What are the chances I’ll ever have a total loss?”

The answer: You don’t need a total loss to trigger one.

🚨 The 50% Rule

Many towns and municipalities follow what’s commonly known as the “50% rule”. This means:

If your building suffers damage equal to or greater than 50% of its current value, local code may require that the entire structure be demolished and rebuilt to modern code — even if parts of the structure are still standing.

So while a fire, collapse, or storm might only damage one side of your property, the entire building may need to come down. And unless you’re insured for 100% of your building’s replacement cost, you could be seriously underinsured when it comes time to rebuild.

🧱 What Is Ordinance or Law Coverage?

Most standard business or property insurance policies cover the cost to repair damages, but they don’t automatically cover the cost to bring your building up to current code or to demolish the undamaged portion of the structure. That’s where Ordinance or Law coverage comes in.

Ordinance or Law coverage is a critical add-on that protects against:

1. The cost to demolish any undamaged parts of your building (if required by law),
2. The cost to rebuild the entire structure up to current building codes, and
3. The increased construction costs that come with code upgrades (like wiring, plumbing, sprinkler systems, ADA compliance, etc.).

Without this coverage, even if you’re insured for the building itself, you could be left with tens or hundreds of thousands of dollars in uncovered expenses.

🛠️ Don’t Wait for a Wake-Up Call

If you own a commercial property or investment building, now is the time to:

✅ Review your replacement cost estimate.
✅ Make sure you’re insured to 100% of the rebuilding cost.
✅ Check your Ordinance or Law coverage limits — or add it if it’s missing.
✅ Ask your agent to walk you through local code risks.

Even if your building is structurally sound today, one unexpected event can trigger this type of coverage need. Be ready before it happens.