Gateway Insurance

Coverges Included in your Home Owners Policy

by Amanda Finerty on Nov 14, 2017

              With the recent Wildfire tragedy your Gateway Agents have been discussing claims and two very important but often overlooked coverages included in most Homeowners insurance policies. We would like to draw attention to: Extended Replacement Cost Coverage and Zoning, Ordinance & Law Coverage.



* Extended Replacement Cost Coverage

Your Home Owners Insurance policy will cover you up to the Dwelling Coverage Limit A on your policy, then with adding Extended Replacement Cost coverage the property would be covered for an additional 10%, 25% or 50%, whichever limit you and your Agent have agreed on, for a covered claim. This additional coverage can pick up some of the extra cost if your repairs exceed your policy coverage amount.

For example, if your Home Owners policy has the Dwelling Coverage A at $300,000 and you need to rebuild after a covered loss, because of the Extended Replacement Cost at 50%, the Insurance Carrier would pay up to $450,000, minus the deductible, to rebuild your home.

Your Gateway Insurance Agents suggest having no less than 50% Extended Replacement Cost coverage if applicable on the policy you have purchased.



* Zoning, Ordinance & Law Coverage

This is an important endorsement that most Home Owner Policies include, but you will find the limit basic and you should explore with your Agent the option to increase these limits.

Zoning, Ordinance & Law Coverage covers the additional costs to repair/replace your home due to a covered loss, up to the county or city’s building code.

For instance, an older home with a fuse box that suffers a structural covered loss would have to be rebuilt with the installation of Romex with Circuit Breakers in order to be up to date with the local building code requirements. Plumbing would have to be up to code with Copper piping, PVC or ABS. Most new homes require whole house sprinkler systems in order to be up to code.

This coverage is important for older and newer homes, as city codes change faster than you might think. Limits for Zoning, Ordinance & Law Coverage options are either 10%, 25% or 50% of the Dwelling Coverage A. If your Home Owners Insurance Dwelling Coverage A is $300,000 the 50% option will provide up to $150,000 in upgrades due to building code requirements. 

Your Gateway Agents suggest choosing nothing less than 50% for Building Code Upgrade.   

                As your Insurance Agency we want to make sure you are aware of your coverages and options before a claim should arise. We are always available to answer your questions and to do a complete policy review. We look forward to speaking with you soon!


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