Hey, my name is Keith Hester. I’m an independent insurance agent with the Heidi Kussurelis Agency based out of Ann Arbor, Michigan. And today I wanted to talk to you about building code, also known as ordinance and law coverage on your homeowner’s insurance policy. So what this coverage is, you’ll typically find it bundled in with all of your coverages on your homeowner’s policy towards the bottom. And it will come in like 10%, 15%, 20% increments. Usually that is not enough coverage. Basically what this does is that it provides updates to the building code to your house. So think of like your drywall. If you have a tornado destroy your house or damage your house significantly, not only does your insurable limit on your house replace your home, but it only replaces it to what it was previously. If you need to update those codes due to what’s going on with the city ordinances or the laws, who’s going to pay for that out of pocket?
If your limit’s only 10% of your dwelling A coverage, that might not be enough when you have to rebuild your house in totality. So what you want to do is make sure those limits are high enough. That way they can take care of any type of potential pitfalls that may happen. And usually the older the home, the higher you want your building home coverage to be. Obviously it’s not always the case, but it is something you want to make sure you go over with your agent to make sure your limits are high enough. Once again, it’s Keith Hester with the Heidi Kussurelis Insurance Agency.
Call Heidi KussurelisInsurance in Ann Arbor MI at (734) 213-6736