Building Codes

What Does Building Codes Mean?

Building codes are state or local rules and regulations that those involved in constructing or working on a building must follow to ensure its safety and sanitation. In the context of insurance, building ordinance coverage is an optional policy that property owners can purchase to protect against losses resulting from changes or updates to building codes over time.

Insuranceopedia Explains Building Codes

If building codes in a particular area change, any building not in compliance with the new standards may need to be altered. For example, if a city’s building code changes to require doors to be at least 4 feet wide, buildings with smaller doors would need to be renovated. The cost of these alterations can be significant. For this reason, many property owners choose to purchase building ordinance coverage as an endorsement of their standard property insurance policy.