Whenever your multi-family buildings were built, they were built according to the building codes of that time and may not be compliant to current codes depending on the frequency and nature of changes in ordinances or laws.
If your building suffers a loss or damage, it may be required to comply with current codes and ordinances in its reconstruction. Basic insurance policies may not cover the expense of bringing your building up to code and would come directly out of your pocket.
However, if your insurance policy includes Building Ordinance Coverage, you may be covered for the increased costs of construction to bring it up to current code.
If you think this could be of interest to you, I have included a link HERE to give you more information.
Ask your insurance company if they offer it and if it would be good for you to have on your investment properties.
As you know, the worse time to find out your insurance coverage isn’t enough is when you find out what it doesn’t cover.
