Understanding by-law coverage: A must for homeowners


Owning a home isn’t just a matter of comfort and security — it’s a significant financial investment that requires thoughtful protection. One aspect that is often overlooked in standard insurance policies is by-law coverage. It’s time to consider why this could be one of the smartest additions to your insurance policy. 


What’s by-law coverage?

Picture this: a storm comes by and causes major damage to your home. Now, not only do you have repairs on your mind, but there are also whispers about “current building codes”. Confused? You’re not alone. It turns out that when you’re fixing or rebuilding parts of your property, you can’t just patch it as it was — you must meet today’s building regulations. And they can change, sometimes becoming stricter and, consequently, more expensive to comply with. 

This is where by-law coverage comes in. It’s specifically designed to help cover the extra costs that can suddenly pop up thanks to those new rules.  It’s like having a safety net, ensuring that if your property does need rebuilding work, your home insurance will cover the additional costs incurred to meet any new standards.


Codes and costs – they’re a thing!

Building codes are updated to maintain safety and other regulatory standards, which don’t retroactively apply but do kick in when repair work is needed; and these updates can potentially inflate your rebuilding costs. That means if you don’t have by-law coverage, you could be left with significant out-of-pocket expenses. 

Think about it this way: your insurance covers the original cost of rebuilding your home according to the standards at the time it was built. But if a storm or other event damages your property and requires repairs or rebuilding, then current codes come into play. Without by-law coverage, you could be left with a hefty bill to cover the difference between the original standards and the current ones. 


Who needs this coverage?

By-law coverage isn’t just for homeowners. If you own a rental property or are a landlord, this coverage can also protect your investment in case of damage. For example, if your rental property requires updates to meet new building codes as a result of a covered loss, by-law coverage can help cover those costs. It’s important to note that standard home insurance policies may not cover the increased cost associated with adhering to new municipal by-laws during reconstruction. 

At Westland Insurance, we understand the complexities that come with rebuilding and repairing properties. Our team of advisors will review your policy and explore options with your insurance provider for the right by-law coverage. For BC homeowners, our Westland Insurance Program (WIP) offers by-law coverage that can be added to your existing policy. Our advisors are like your personal insurance guides, helping you make informed choices that align with your unique needs. 


Take the next step

Don’t get blindsided by the future. Take control and connect with a friendly face at Westland Insurance to explore how by-law coverage can fortify your insurance policy. Our doors (and phone lines and emails) are wide open when you’re ready. 

By-law coverage is more than just insurance; it’s about being proactive in safeguarding your home — and your finances. Interested in learning more? Connect with us us to learn more about by-law coverage and start the conversation.

Ready to get started on your quote? Click below to get started with coverage that goes further. 


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