What Is Ordinance or Law Coverage? Why It Matters More Than You Think

​Learn what Ordinance or Law coverage is and why it’s essential for older homes.

​Discover how this coverage protects you from costly code upgrades when rebuilding after a covered loss.




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If your home were damaged or destroyed in a covered loss, your insurance would help you rebuild—right?

Well… not always.

If your home was built decades ago and local building codes have changed since then, your basic home insurance policy may not cover the cost of bringing it up to current code.

That’s where Ordinance or Law coverage comes in.

Let’s break down what this coverage is, why it’s important, and how it can protect you from unexpected out-of-pocket costs.

🏗️ What Is Ordinance or Law Coverage?
Ordinance or Law coverage is an add-on (or sometimes included endorsement) on your home insurance policy that helps pay the extra cost of rebuilding or repairing your home to current building codes after a covered loss.

It applies when local or state laws require you to:

• Upgrade your electrical, HVAC, or plumbing systems
• Replace undamaged portions of the structure
• Tear down and rebuild the entire home if more than a certain percentage is damaged

📘 Example: Your home suffers a fire, but only 60% is damaged. However, local law requires the whole home to be demolished and rebuilt to meet modern code. Your standard policy may only pay for the damaged portion--Ordinance or Law coverage pays for the rest.

🧱 Why It Matters (Especially for Older Homes)
Building codes evolve over time to improve safety, energy efficiency, and structural integrity. If your home was built 20, 30, or even 50+ years ago, it may not meet today’s new build requirements.

That means:

• Electrical systems may need upgrades to meet amperage or safety codes
• Plumbing may need to be replaced with new materials
• Roofing or framing may need additional structural support or fire-resistant materials

These upgrades aren’t covered by default in most standard homeowners policies—so unless you have Ordinance or Law coverage, you could be stuck footing the bill.

🔍 What Does It Typically Cover?
Ordinance or Law coverage can include:

1. Demolition Costs
   If a portion of your home must be torn down—even the undamaged parts—to meet code.
2. Increased Rebuilding Costs
   Any materials or labor required to meet updated building codes.
3. Upgrading Undamaged Areas
   If a law requires you to bring all of the home up to code, not just the damaged sections.

🚫 What It Doesn’t Cover

• Normal wear and tear or maintenance issues
• Cosmetic upgrades or elective remodeling
• Code updates if no covered loss has occurred

This coverage only applies after a covered loss, like a fire, storm, or major water damage. It doesn't pay to proactively bring your home up to code.

💡 Real-Life Example
A windstorm damages your home’s roof, and you file a claim. During the repair process, the city inspector requires your entire electrical panel to be updated to comply with code—even though it wasn’t damaged.

Without Ordinance or Law coverage? That upgrade is on your dime.
With it? Your policy may help cover the additional cost.

📈 How Much Coverage Do You Need?
Many insurance carriers offer this coverage as a percentage of your dwelling limit—commonly 10%, 25%, or even 50%. So if your home is insured for $300,000:

• 10% = $30,000 available for code upgrades
• 25% = $75,000 available
• 50% = $150,000 available

Your agent can help determine the right limit based on your home’s age, size, and location.

✅ Do You Already Have It?
Some policies include Ordinance or Law coverage automatically, especially newer or more comprehensive policies. But many basic or budget-friendly policies exclude it—especially in older homes or certain zip codes.

🔎 Not sure if it’s included in your policy?
Contact Corin Insurance for a quick review. We’ll let you know if you’re protected—or if you need to add it for peace of mind.

🛡️ Final Thoughts
Ordinance or Law coverage may not be the flashiest part of your policy, but it could be the most important if you ever need to rebuild. Building codes change—but your peace of mind doesn’t have to.

👉 Want to make sure you’re not left paying for code upgrades out of pocket?

Reach out to Corin Insurance today. We’ll review your current coverage and help you fill any gaps—so your policy works the way you expect it to.

Disclaimer:Coverage availability and policy terms vary by insurance carrier and state. This content is for informational purposes only and does not constitute insurance or legal advice. Always consult a licensed insurance agent for recommendations specific to your property and location.