Does insurance cover non-conforming unit?

[Eugenia K.]

I'm weighing putting in an offer on a duplex that has an additional non-conforming unit in Seattle. I'm wondering how home insurance (and for the renter, renter's insurance) works on the non-conforming unit. Would it be covered?

[Andrew Wicklow]

@Eugenia Koo

The short answer is yes. But the long answer is that you need to have a coverage called ordinance or law. Specifically coverage A of ordinance or law. That covers an undamaged portion of a building that requires a code upgrade. So for example if a fire happens somewhere in the building other than the non conforming units and the city doesn’t allow the nonconforming unit to exist any longer because of its nonconforming status, this coverage would handle a situation like that.

Let me know if you have other questions or this needs more clarification.

Andrew