TUESDAY, JANUARY 18, 2011
Effective January 1st, changes in the Uniform Construction Code made Pennsylvania one of the first stations in the nation to require sprinkler systems for all new single-family homes. While this does not make some builders happy, the National Fire Sprinkler Association has been quoted by stating “this regulation will protect people in the place they should feel safest – their homes.” Some estimate the cost of the sprinkler system will add $4,000 to as much as $20,000 to the sale of a home.
While this news has received mixed reaction, the consumer with a current home without the sprinkler needs to understand how their policy would respond in the event of a loss and the need to now reconstruct with a sprinklers. Sprinkler installation expense associated with home reconstruction after a total loss would be addressed by the respective homeowners policy’s ordinance or law coverage.
A majority of our clients have Erie Insurance for their homes. Erie’s homeowner policies provide ordinance or law coverage equal to the great of 10 percent of the dwelling coverage limit or $5,000. This coverage can be increased with the purchase of Erie’s Ordinance or Law Coverage Endorsement or our Enhancement Endorsement, both of which eliminate the percentage limitation. Erie’s ordinance or law coverage is considered an additional amount of insurance in excess of the Section I coverage limit.
Some insurance companies will also provide a discount for having a sprinkler system in the home. With Erie Insurance the discount is 10%.