Building Ordinance Coverage
Categories: Regulations, Real Estate
Insurance intended to help cover costs associated with building upgrades and renovations.
When Barbie bought her dream house, she thought everything was perfect. It was pink, had a garage for her car, and was assembled by someone else.
However, a few years later, she wanted to turn the residence into a sorority house for the younger, more diverse group of her peers that had come to town in recent years. When doing so, she realized that whomever built the house originally used an overabundance of lead paint and asbestos in its construction, and it would cost more than $500,000 to perform the renovation and get the building up to code.
Luckily, her real estate agent, Ken, had included a building ordinance coverage policy in her original deed, so Barbie didn’t have to pay for any of the renovation costs.
