By Matt Yost

This hypothetical situation of needing proper insurance coverage is an important scenario to think about, especially for owners of older commercial buildings.

Here are the key points to consider:

Scenario Overview:

Imagine owning a one-hundred-year-old commercial building in your community's downtown area. This four-story brick construction building suffered fire damage to the third and fourth floors one night while vacant.

City Engineer's Assessment:

Despite salvageable portions, a city engineer mandates complete demolition and rebuilding due to the building's age. Requirements include installing an elevator, updating wiring to current codes, and ensuring ADA compliance.

Coverage Gap Without Ordinance or Law Endorsement:

Without ordinance or law coverage endorsement, significant portions of the claim may remain uncovered despite having commercial property insurance.

Components of Ordinance or Law Coverage: assessing whether ordinance or law coverage is included in their insurance program is crucial

·        Coverage A: Replacement of undamaged portions of the building.

·        Coverage B: Funding for demolishing undamaged portions.

·        Coverage C: Compensation for increased construction costs to meet current building codes.

Importance of Coverage Analysis:

For owners of older commercial buildings, it's crucial to assess whether ordinance or law coverage is included in their insurance program.

If you're uncertain about your coverage or need assistance in analyzing your insurance program, please call us at the Hummel Group. We're here to provide expert guidance and ensure your commercial property is adequately protected against unforeseen events.