What Does Building Codes Mean?
Building codes are state or local rules and regulations that parties who are constructing or otherwise working on a building must adhere to for the safety and sanitation of a building. In the context of insurance, building ordinance coverage is insurance that can be purchased to protect property owners against losses that can ensue due to alterations of building codes as time goes on.
Insuranceopedia Explains Building Codes
If building codes in a particular area change, then any building not up to date with the new standards may have to be altered. For example, if a city building codes changes its requirement that all doors must be at least 4 feet wide, then buildings with smaller doors would need renovating. The cost of making these alterations can be expensive. For this reason, many chose to buy building ordinance coverage as an endorsement to a standard property insurance policy.