If you have a fire (or any other covered loss) in your building, you will probably be required to repair the property to current building codes. For example, your local code might require the repaired building to include an upgraded electrical panel, a plumbing system, and handicap accessibility. The total cost of these required upgrades could increase the repair cost by tens of thousands of dollars.
Most commercial property insurance policies include only limited coverage for costs resulting from upgrades required by code. Other policies might exclude such costs altogether.
What does your policy say? Review your commercial property policy for coverage concerns related to expenses resulting from the enforcement of “ordinance or law.” If payment for such costs is limited or excluded, it may be possible to amend your policy to include coverage.
