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

Living room

Renting Out Your Home? Here’s What You Need to Know About Liability and Insurance

Renting out your home—whether short-term or long-term—can provide extra income but also introduces legal and insurance risks. Before listing your property, it's essential to research local laws, use a clear rental agreement, screen tenants carefully, and ensure your insurance policy provides the right coverage. Taking steps like securing valuables, documenting your home’s condition, and staying accessible can help protect your property and minimize potential issues.
Read more
Ashley Pu Calderon and Wayne Texeira

Working with Co-op Students Yields a Mutually Beneficial Experience

As summer winds down and the next academic year approaches, we at Murphy Insurance Agency are both proud and a little wistful as we say goodbye to Ashley Pu Calderon, our most recent co-op student from Assabet Valley Regional Vocational Technical High School. While we’re sad to see her go, we’re incredibly excited for her as she begins her college journey
Read more
College Students 1200

Headed to College? Don’t Forget About Insurance

Whether it’s freshman year or senior year, sending a student off to college is a big deal. Between class schedules, dorm shopping, moving day, and maybe a few emotional goodbyes, there’s a lot going on. With so much happening, it’s easy to overlook things like insurance. But here’s the thing: insurance should definitely be on your college checklist, because being covered can save you time, money, and major stress down the road.
Read more
OSHA Safe & Sound Week

OSHA’s Safe and Sound Week Runs From August 11-17, 2025

More than 5,000 workers are killed on the job each year, and more than 3.6 million employees are seriously injured each year while at work. Because of this, OSHA holds a nationwide event each August called Safe and Sound Week, which promotes the importance of companies incorporating safety and health programs into their workplaces. This year, the event runs August 11-17, 2025.
Read more
Hudson Family Dental

Business Spotlight: Hudson Family Dental Providing Modern Dentistry in the Heart of Hudson

Hudson Family Dental has been providing modern, compassionate dentistry in Hudson, MA since 1988. With cutting-edge technology and a team dedicated to personalized care, they’ve earned the trust of local families for generations. Learn how this Main Street practice blends innovation with community values—and why Murphy Insurance is proud to call them a client.
Read more
Kitchen

Smoke Detector Maintenance: Keep Your Home and Family Safe

Smoke detectors are one of the most vital tools for protecting your home and family, but they only work if they’re properly maintained. In this post, we’ll cover how to choose the right smoke detectors, where to place them, and how to keep them in working condition through regular testing and battery replacement. A few simple steps can make all the difference in a fire emergency.
Read more
File folders

Employee Benefits SAR Is Due by September 30 for Calendar Year Plans

Many employers that must file Form 5500 on behalf of their employee benefit plans must also provide plan participants with a summary annual report (SAR). The SAR is a summary of the information included in the Form 5500. Employers with plans that operate on a calendar year basis must provide the SAR by Sept. 30
Read more
Life Insurance in Groton, MA Protecting What Matters with Murphy Insurance

Life Insurance in Groton, MA: Protecting What Matters with Murphy Insurance

For families and individuals in Groton and surrounding communities, life insurance from Murphy Insurance offers more than peace of mind—it provides a solid foundation for long-term financial security. Whether you’re safeguarding loved ones, covering debts, or planning for the future, our personalized life insurance solutions are designed to fit your goals and budget. From affordable term life to permanent protection and full-service planning, our Groton-based team is here to help you protect what matters most with trusted guidance, top-rated options, and local expertise.
Read more
Balance Scale 1200

Supreme Court Upholds ACA’s Preventive Care Mandate

On June 27, 2025, the U.S. Supreme Court upheld a key component of the Affordable Care Act’s (ACA) preventive care mandate. Due to the Court’s ruling, the ACA’s preventive care mandate remains in full effect and health plans and issuers are required to continue covering the entire range of recommended preventive care services without cost sharing.
Read more

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.