Ordinance or Law Coverage

Ordinance or law coverage pays for the increased cost of repairs or rebuilding when your home must be brought up to current building codes after a covered loss.

Why It's Needed: Building codes change over time. After significant damage, repairs often must meet current codes—not the codes when your home was built. Standard policies may not cover these extra costs.

What It Covers: 1. Coverage A - Loss to undamaged portion: If code requires demolishing undamaged parts 2. Coverage B - Demolition costs: Tearing down what remains 3. Coverage C - Increased cost of construction: Upgrading to current codes

Examples of Code-Required Upgrades:

• Electrical system updates
• Plumbing to current standards
• Hurricane straps and tie-downs
• Energy efficiency requirements
• Fire sprinkler systems
• Accessibility requirements
• Foundation reinforcement

  Example Scenario:

Fire damages 40% of your older home. Current building codes require:

• Complete electrical rewiring
• Updated HVAC
• New windows meeting energy codes

  Without ordinance coverage, you pay these upgrades out of pocket.

  Who Needs It:

• Homes over 20 years old
• Homes in areas with updated codes
• Properties in disaster-prone regions
• Historic homes

  Coverage Amounts:

Typically offered as a percentage of dwelling coverage (10%, 25%, 50%) or specific dollar amounts.