What is Ordinance or Law Coverage in My Homeowners Policy?


Did you know that after experiencing a homeowners loss, rebuilding your home to meet current codes or demolishing what is left of it might increase your cost up to 50 percent? Florida communities have laws or building codes that greatly affect the reconstruction of damaged homes. These building codes change over time and they rarely become less demanding. Ordinance or Law Coverage can help protect you from increased costs due to a storm or other loss event damages your home.

Most homeowners policies will limit the amount of coverage for the following additional increased costs caused by adherence to current ordinance or law.

  • The construction, demolition, remodeling, renovation or repair of a building or other structure
  • The demolition or reconstruction of the undamaged portion of a covered building or other structure
  • The remodeling, removal or replacement of the portion of the undamaged part of a building or other structure needed to complete your repair

An example of how the Ordinance or Law Coverage applies. Your home sustains damage to the roof when your Grand Oak tree falls into your living room during a windstorm. Roof repairs will probably now require costlier shingle replacement and minimally, hurricane roof straps or specific size roof nails. These additional and more expensive items will add significant costs to your repair bill. Ordinance or Law Coverage pays for those costs, which insurance carriers would otherwise consider an improvement to your property absent the coverage. Without this important endorsement, you must pay the additional costs. Add these costs to your deductible and you can see why this coverage can be so critical to your budget.

The worst possible time to learn of coverage restrictions is after you have suffered a loss. Talk to an insurance agent and find out what coverage you have and how to obtain the right coverage for your home.

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