As we all watch this onslaught of hurricanes with bated breath, it is a good reminder to review your company’s property insurance to ensure you are covered appropriately. Having basic coverage might not be enough if your property was hit with a catastrophe.
Consider, for example, current building codes. Many companies’ buildings are not currently up to code because of grandfathered provisions. These “safe harbor” provisions may have saved you money and effort to date, but no longer apply if you needed to rebuild.
This includes ADA standards. Unfortunately, most policies will only cover the replacement cost of your building as it was before the catastrophe. The expensive ADA improvements or any other possible new building standards will not be covered.
Thankfully, a simple, and usually very affordable, supplement within the policy called Ordinance or Law will help you cover the costs of those necessary improvements. How does it work? Let’s say your bathroom is not ADA compliant because it fell under the safe harbor provision of “2010 ADA Standards for Accessible Design.” If a catastrophe destroyed your property, the policy only may cover the cost to replace it as it was prior to the incident.
However, the town and state will require you to update the bathroom to meet the current ADA laws. These enhancements would not be covered under the replacement cost portion of your property policy. The Ordinance or Law supplemental coverage would make up the difference without costing you much extra in premiums.
Every building is different and can be held to many different requirements and standards. If your insurance provider has not reviewed and personalized your property policy recently or taken the time to ensure you understand what it does and does not cover, now would be a good time to review it.
Even a small storm can create a large amount damage. Make sure you are covered to in case of a loss.
This outlines in general terms the coverages afforded. Please consult the policy for specific information regarding exclusions, limitations and conditions that may affect coverage.