Why Ordinance or Law Coverage Can Be Important for Home and Business Properties

September 1, 2023||inBusiness Insurance, Personal Insurance|business insurance, homeowners insurance, ordinance or law, personal insurance

Changes in building codes often entail unforeseen costs that can surpass the coverage provided by standard insurance policies. Comprehensive protection is important to safeguard against potential financial liabilities arising from these adjustments.

Do you know how your home or other property would comply with current building codes if you had to rebuild after a fire or other loss? If not, you’re not alone; however, it’s a real concern that you need to consider. Changes to building ordinances and laws can require upgrading your building to new standards during reconstruction, which can result in extra expenses that may not be covered by a basic property insurance policy.

Why Ordinance or Law Coverage Can be Important for Home and Business Properties
Click here to submit an inquiry to Murphy Insurance or call us at 800 222 8711
The MA Board of Building Regulations and Standards is continually working on changes to the building codes related to construction and energy standards. These changes and other local ordinances can become an issue when it comes to rebuilding, especially after a significant loss.


Ordinance or Law Insurance Covers Extra Expenses Not Covered by a Basic Policy

Insurance policies only cover rebuilding to the condition before a loss, not betterments and upgrades.  Even if you are diligent about ensuring your property valuation and coverage limits are appropriate for replacement costs, most property policies only provide minimal coverage to address additional costs resulting from ordinance or law issues. To be protected, you need to purchase Ordinance or Law Insurance, which covers explicitly such extra expenses including:
  • Loss to the undamaged portion of the building
  • Demolition and removal costs of the undamaged portion of the building
  • Increased costs of repair or reconstruction due to building code changes

For example, your building is 50% damaged in a fire.  Your local building code may require that the undamaged portion of the building be demolished or that you update components of the intact structure to current building codes to rebuild. The demolition or upgrades to the undamaged portion of the building wouldn’t typically be covered by a standard policy, which only pays for repairs and replacement of the damaged portion.

There are numerous other examples of situations where laws create extra expenses that will only be covered if you have the option of expanded Ordinance or Law Insurance added to your property policy. The age of your building may not be relevant, so don’t assume that just because your property was recently constructed, you don’t have to worry about ordinance or law situations.

To learn more about Ordinance and Law Insurance, please Contact Us at Murphy Insurance Agency.

Read Other Blog Posts

Chimney

Chimney Maintenance Is Essential

A well-maintained chimney is essential for keeping your home safe, as neglected chimneys are a leading cause of fireplace-related fires and carbon monoxide issues. With an estimated 20,000 chimney fires occurring each year in the U.S., routine inspections and cleanings play a critical role in reducing creosote buildup and preventing costly damage. By making chimney care part of your annual home-maintenance plan, you’ll protect your property and ensure your fireplace operates safely all season long.
Read more
Groton Hill Music Center

Business Spotlight: Groton Hill Music Center – Inspiring Community Through the Power of Music

Groton Hill Music is one of our most inspiring community partners—a vibrant nonprofit arts center where creativity, education, and connection thrive. From world-class performances to inclusive music education, they enrich the region every day. Murphy Insurance is proud to support their mission with tailored business coverage that protects their people, programs, and purpose.
Read more
Woman buying a car

Shopping for a Safe Vehicle

When shopping for a new vehicle, safety should be a top consideration. This brief guide outlines key safety features—from crash protection to advanced driver assistance systems—and explains how they can impact your insurance costs. Understanding these factors can help you make a smarter, more informed purchase.
Read more
Operating Under the Influence (OUI) Will Cost You Money

Operating Under the Influence (OUI) Will Cost You Money

An Operating Under the Influence (OUI) conviction is more than a legal problem; it’s a financial disaster. Between fines, court fees, license costs, higher insurance premiums, towing, and lost wages, one mistake can cost you between $11,000 and $30,000. The best way to save? Don’t drink and drive.
Read more
Why Huge Lawsuit Verdicts Matter

Why Huge Jury Verdicts Matter for Your Business Insurance

Huge jury awards, known as nuclear verdicts, are on the rise, forcing insurers to rethink coverage limits, premiums, and risk management. Reviewing liability policies now can help businesses stay protected and avoid unexpected financial losses.
Read more
Business Insurance Issues 1200

10 Insurance Issues Businesses Should Keep Top of Mind in 2026

Staying ahead of evolving risks is essential for every business in 2026. From property valuations to cyber threats and liability coverage, these 10 insurance considerations can help you safeguard your operations and plan for the unexpected.
Read more
Plan a Safer Workplace With the 2026 National Safety Observances Calendar

Plan a Safer Workplace With the 2026 National Safety Observances Calendar

Build a stronger safety culture with our 2026 National Safety Observances Calendar, a simple planning tool to keep workplace safety top of mind all year. The downloadable PDF includes key observance dates, plus training and awareness resources to help reduce accidents, improve productivity, and lower insurance costs.
Read more
Our 2026 National Health Observances Calendar Plan For Wellness All Year

Our 2026 National Health Observances Calendar: Plan For Wellness All Year

Staying informed about national health observances is a simple but effective way to promote wellness, spark meaningful conversations, and support healthier communities. Our 2026 National Health Observances Calendar makes planning easier by highlighting key health awareness days and observance months throughout the year.
Read more
2026 HR Compliance Calendar 1200

The 2026 HR Compliance Calendar Every Business Needs

Staying compliant with employment laws and regulations is critical to protecting your business. To help simplify this often complex responsibility, Murphy Insurance has created a 2026 HR Compliance Calendar, a downloadable planning tool that outlines key HR-related deadlines and compliance reminders throughout the year.
Read more
PreviousNext

Visit Our Personal Insurance Page

Personal Insurance

Life is an ever-changing journey, and it deserves a thoughtful, comprehensive plan to protect the things and people that matter most. Our dedicated team at Murphy Insurance is here to assist you in creating that plan. With a wide range of product options at our disposal, we ensure that your plan is tailored precisely to your requirements. Our commitment to providing clear, intelligent guidance to help you achieve true peace of mind. Learn more about our personal insurance portfolio.

Visit Our Business Insurance Page

Business Insurance

Murphy Insurance stands as your steadfast partner in safeguarding your business from unforeseen challenges in today’s dynamic business landscape. In an era where comprehensive business insurance is not just a prudent choice but a vital one for ensuring the long-term stability and security of your enterprise, we are here to offer our expertise. Running a business inherently entails various risks that can potentially impact your financial stability and reputation. Learn more about our comprehensive business insurance solutions, which are meticulously designed to protect you from these potential threats, granting you peace of mind necessary to focus on the growth and prosperity of your business.