Jump to navigation

by Michelle Ferris on Dec 22, 2014

Skyrocketing Costs for Demolition and Repair

Building Ordinance Insurance is often overlooked. Despite its importance, many insurance policies exclude this type of coverage. So what is Building Ordinance Insurance Coverage… and what makes it so important?

Let’s say there’s a fire in your building. Three quarters of the building is destroyed. Insurance will pay for the damaged three quarters of your building -- No more.

But the remaining quarter of your building which escaped damage is unlivable. In this instance, the city may tell you to knock down the remaining one-fourth of your building.

  • If you don’t have enough of Building Ordinance Coverage “A,” you would be paying for a quarter of the building’s costs out-of-pocket.
  • If you didn’t have enough of Building Ordinance Coverage “B,” you would be paying to demolish and remove that quarter of the building as well.

This can go even further into skyrocketing costs… When rebuilding, you will be required to bring your building up to code. This includes installing sprinkler systems, making it safe for earthquakes, adding an elevator and making the building ADA compliant, and more.

These costs can add up to tens of thousands of dollars. If you’re not prepared to pay it out-of-pocket, be sure you talk to your PLC Insurance agent about Building Ordinance Insurance.




What’s the Difference in Coverage Types?

  • Building Ordinance Insurance Coverage A: Covers loss in value of the undamaged portion of the building due to demolition pursuant to a building ordinance or law.
  • Building Ordinance Insurance Coverage B: Covers the cost of demolition and removing of debris of the undamaged portion of the building, if building ordinance law requires demolition.
  • Building Ordinance Insurance Coverage C: Covers the increased cost to repair, reconstruct or remodel damaged or undamaged parts of the building to comply with a building ordinance or law.

Protect yourself from costs that put your business in peril with the appropriate type of protection. Contact a PLC Insurance agent to find out what type of insurance policy is best for your business.

© 2019, PLC Insurance. The reader assumes all responsibilities for his/her own actions in regards to any items discussed in this report. Adherence to all applicable laws and regulations, federal, state and local, governing the use of any product or service described in this report in the US or any other jurisdiction is the sole responsibility of the reader. The publisher and author assume no responsibility or liability whatsoever on the behalf of the reader of these materials. The reader is encouraged to consult directly with his/her insurance professional.

Article Comments

There are no comments yet.

Be the First to Leave a Comment

(Do not fill out this field, or your comment will be ignored. This field is here to help us protect against automated (spam) comments.

Your comment will show up once it has been reviewed.

Share this blog post

« Back to all news

Referral Program Charitable donations

Tell your friends about PLC!
We'll make a donation to a local charity in your name. Learn more

Bookmark our mobile site visit m.plcins.com

Information you need, when and where you need it most. More »

PLC Insurance, LLC - Serving the Greater Seattle Area and all of the Pacific Northwest

Jump to navigation



Mon-Fri 8AM-5PM

Our location

Lynnwood office

19401 40th Avenue W, Suite 440
Lynnwood, Washington 98036

Additional navigation:

Home Page | Why Choose an Independent Agent? | Contact | About | Service | Search | Privacy Policy

© 2019 PLC Insurance

PLC Insurance services all of the US, with a focus on the Puget Sound, Lynnwood, and Seattle, Washington