A Quick look at California’s “Green Building Codes”
Many long time purchasers of California homeowners Insurance have learned about exclusions of Water Damage (i.e. Flood) and earth movement (i.e. Earthquake) found in the standard Homeowner Policy. What most are unaware of is exclusion “Ordinance or Law” which are the additional costs of demolishment, replacement and/or reconstruction as a result of the enforcement of current laws and building codes.
As many homeowners have learned you can address the “Flood” and “Earthquake” exposures with an endorsement or additional policy. The “Ordinance or Law” limitation can also be addressed by endorsement as well. In fact the California Dept of Insurance felt it was so important of a coverage they mandated Insurance Companies to print out on the front of your policy if this coverage is provided.
With the implementation of the “California Green Building Codes” which require homes to be built/rebuilt with Interior Sprinklers and Whole House Fans the importance of addition of “Ordinance or Law” type endorsement to your policy becomes even more necessary. Many companies are now including this coverage wholly or in a limited amount. Please consult your California home insurance policy or better yet call your agent to find out where you stand on this coverage otherwise you could be left out on the “Code” and unexpectedly be out of pocket for thousands of dollars of reconstruction cost.
Written by: Doug Samis