Investment Property Insurance: Sewer/Water Backup + Ordinance/Law

[Mark S.]

I just received an insurance renewal email for a property I own that I purchased for $84,000 in Memphis, TN.

The email states that water/sewer back up coverage was previously included, but now is available for an additional premium of $70.47.

It states the same for ordinance or law coverage, which is now available for an additional premium of $35.76.

I’m assuming these additional premiums are per year. Is it worth it? I need to ask them what ordinance or law coverage is, as this isn’t really clear to me.

Deductible is $2,500, which I plan to keep in tact (if that helps in your responses). Thanks in advance.

[John Mocker]

Mark,
Oridinance & Law coverage is important if the building codes or zoning laws have changed since the house was built, it is on a non-conforming lot, etc. Those changes could require you to build in a different and more expensive manor than the way the building is today. Ordinance & Law coverage pays for the increased cost of reconstruction. It is normally sold in either a set dollar limit or a percentage of the building limit.