Insurance agents do a bad job of explaining the concept of "replacement cost." We tend to tell clients they will get new stuff for old junk and while that may be partially true, partial truths get you sued.

One roadblock to replacement cost is building codes or what we insurance practitioners refer to as ordinances or laws. Unendorsed policies offer only a VERY limited amount of coverage for the increased costs to rebuild due to these ordinances or laws, and when your insured is forced to pay these additional costs out-of-pocket, they are going to be mad!

Topics covered in this session include:

• The purpose of ordinance or law coverage;
• Coverage gaps creating the need for ordinance or law coverage;
• Sources and enforcement of building codes;
• When damage is considered “major";
• Common ordinance or law requirements and coverage limitations;
• Three commercial property ordinance or law coverage forms;
• Ordinance or law coverage (CP 04 05);
• Ordinance or law - increased period of restoration (CP 15 31);
• How to develop ordinance or law premiums;
• Ordinance or law example; and
• A little something extra: ordinance or law for your homeowners' clients.