Many homeowners are surprised to learn that rebuilding after a major loss can cost more than expected—not because of the damage itself, but because building codes and local ordinances have changed. That’s where Ordinance and Law coverage comes in.
Knowing how much of this coverage you have before a loss occurs can make a big financial difference.
What Is Ordinance and Law Coverage?
Ordinance and Law coverage helps pay for the additional costs required to rebuild or repair your home to current building codes after a covered loss.
This can include:
- Demolition of undamaged portions of the home
- Upgrading electrical, plumbing, or HVAC systems
- Meeting new fire, safety, or accessibility codes
Standard homeowners policies typically exclude these costs unless Ordinance and Law coverage is included.
Check Your Declarations Page (Dec Page)
The easiest way to find your Ordinance and Law coverage is on your Declarations Page.
Look for:
- “Ordinance or Law”
- “Building Code Coverage”
- “Coverage A – Ordinance or Law”
This section will show:
- Whether the coverage is included
- The coverage limit (often expressed as a percentage or dollar amount)
Review Your Policy Endorsements
Ordinance and Law coverage is often added through an endorsement.
Search your policy documents for endorsements titled:
- “Ordinance or Law Coverage”
- “Increased Ordinance or Law Limits”
- “Building Code Upgrade Coverage”
These endorsements explain how the coverage works and the maximum amount available.
Understand How Limits Are Calculated
Ordinance and Law coverage is commonly written as:
- 10%, 25%, or higher of your dwelling coverage, or
- A specific dollar limit
For example:
- If your home is insured for $400,000 and you have 25% Ordinance and Law coverage, you may have $100,000 available for code upgrades.
Check the Policy Exclusions and Conditions
Your policy’s exclusions and conditions sections explain:
- What types of code upgrades are covered
- When the coverage applies
- Any limitations or requirements
This helps you understand what the coverage does—and does not—pay for.
Ask Your Insurance Agent or Company
If the policy language is unclear, a quick call or email can confirm:
- Your current Ordinance and Law coverage limit
- Whether it’s sufficient for your home’s age and location
- Options to increase coverage if needed
This is especially important for older homes or homes in areas with stricter building codes.
When Should You Review or Increase Coverage?
Consider reviewing your coverage if:
- Your home is older
- Local building codes have changed
- You’re renovating or remodeling
- Your policy is up for renewal
Upgrading Ordinance and Law coverage is often affordable compared to the potential out-of-pocket cost.
Final Thoughts
Ordinance and Law coverage can be the difference between a smooth rebuild and an unexpected financial burden. By reviewing your declarations page, endorsements, and policy details—or by speaking with your insurance provider—you can know exactly how much protection you have.
If you haven’t reviewed this coverage recently, now is a smart time to do so.