Bylaw And Code Upgrades During Reconstruction – What To Be Aware Of

When fire, flood, or other damage to your home or property occurs that results in needing to rebuild, the reconstruction may need to comply with new bylaws. A property built in 1945 may have been subject to different zoning bylaws related to the building's footprint, environmental impact, or many other factors. If these upgrades are not included in your insurance policy, you may be left with a shortfall between actual reconstruction costs and what your insurer is obligated or willing to pay.

Coverage enhancement or "bylaw" policies will cover these increases but will usually have a separate limit – and that limit can often be insufficient. It is therefore very important to make sure that you are aware of the potential bylaw-related reconstruction costs that will apply to your dwelling, and make sure you are adequately prepared in case of such an emergency.