Cover the Cost of Building-Code Compliance

Insuring historic and landmark houses raises a separate set of concerns, but any home that is more than 20 years old has fallen behind the current municipal building codes related to structural design, earthquake or storm protection, wiring, plumbing, and other safety issues. If the house has to be fully or partially replaced, the cost of improvements required to meet current regulations will most likely not be covered by standard homeowner's insurance. The coverage only replaces what you had. Literally. Check with the local building department to find out whether codes have changed significantly since your home was constructed. If they have, consider purchasing upgrade coverage, sometimes called ordinance and law coverage, which protects against these additional replacement costs for about 8 percent of the annual premium.

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