Coverage A
Loss in value of the undamaged portion when code requires it to be demolished.
Ordinance or Law Coverage for Commercial Real Estate
After a major loss, the cost to rebuild may include much more than replacing what burned. Current building codes can require demolition and upgrades that were not part of the original structure.
What to Review
The details that can change the insurance program.
Commercial real estate insurance is highly dependent on the building, occupancy, leases, valuation, protection and income exposure. A useful review goes beyond simply quoting the same limits.
Coverage B
The cost to demolish and remove the undamaged portion of the building.
Coverage C
The increased cost to rebuild or repair in compliance with current codes.
Older buildings
Age, renovations and changing building codes can increase the importance of these limits.
Key Exposures
Questions worth answering before renewal.
Seismic upgradesLocal requirements may trigger structural upgrades after a covered loss.
AccessibilityReconstruction may require accessibility improvements not present before the loss.
Fire & life safetySprinklers, alarms, egress and other systems may need to meet current standards.
Limit adequacySmall sublimits may be insufficient for a major code-driven reconstruction.
Related Topics
Go deeper on the exposures that matter.
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