What is Ordinance or Law Coverage?
Rebuilding after a covered loss isn’t always as simple as restoring what you had. Changes to local building codes and local ordinances since your home was built may cause upgrades to be required, which can increase the cost to rebuild.
What Is Ordinance or Law Coverage in Homeowners Insurance?
Ordinance or law coverage is an optional protection included in many homeowners' insurance policies. It is either included in the policy or added as an endorsement and covers the cost of bringing your home up to the latest building codes after a covered loss rather than stopping at restoring it to its previous state.
Without ordinance or law coverage in place, you risk paying out of pocket for the required construction and updates.
How Local Building Codes Impact Your Rebuild Costs
When a home is repaired or rebuilt, laws or ordinances and local building codes must be followed. If your home is an older or aging home, these codes may require upgrades you didn’t have before—such as electrical improvements, structural reinforcements, or updated plumbing.
In Florida, rebuilding after a covered loss can trigger stricter construction requirements than when your home was originally built.
This can mean elevating the home to meet floodplain standards, reinforcing structural components for wind resistance, or updating electrical or mechanical systems. These additional cost requirements could significantly increase your rebuild expenses, which standard property insurance may not cover without ordinance or law protection.
How Ordinance or Law Coverage Protects You During a Claim
If a covered loss damages your home, your insurance company will determine if building codes require changes. When the law requires upgrades, ordinance or law coverage helps pay for them—preventing surprise uncovered expenses during the rebuild.
Three Parts of Ordinance or Law Coverage
Ordinance or law coverage is typically divided into three parts. Each part addresses a different type of expense you may face when building codes require changes after a covered loss.
Part 1 – Loss to the Undamaged Portion
Covers the cost of tearing down and removing the undamaged portion of your home if a law requires it.
Part 2 – Demolition Costs
Covers the cost of demolishing damaged portions of the structure.
Part 3 – Increased Cost of Construction
Covers the increased cost to rebuild your home to the latest building codes.
How Ordinance or Law Coverage Protects Your Finances
Even minor repairs may trigger building code compliance and require updates, creating increased cost obligations you didn't expect. Ordinance or law coverage ensures repairs comply with local building codes without draining your savings.
Matching Coverage vs. Ordinance or Law Coverage in Florida
In Florida, homeowners may hear about “matching coverage” alongside ordinance or law coverage. Matching coverage applies when damaged materials must be replaced to match undamaged areas.
Ordinance or law coverage applies when building codes require updates. Both protect your home, but in different ways.
How Much Ordinance or Law Coverage Should You Have?
The right amount depends on your home’s age, location, and local building codes. An older home may require more updates to meet the latest building codes.
A licensed insurance agent can review your home's age, construction type, and location to recommend the right amount of protection. Many insurers also offer digital tools and online assessments to help determine appropriate coverage levels quickly and answer any questions you may have.
What’s Covered Under Ordinance or Law Insurance
This coverage may:
- Cover the cost of demolishing undamaged portions of your home.
- Cover the cost of upgrades like wiring, plumbing, or structural reinforcements.
- Help with the increased cost of construction required by local ordinances.
What Ordinance or Law Coverage Does Not Cover
It doesn’t apply if upgrades are voluntary or unrelated to a covered loss. It also won’t pay for routine maintenance or renovations you choose to do.
Ordinance or Law Coverage for Older Homes
Owners of older homes often benefit most from this protection. Older wiring, plumbing, and structural designs often fall short of current safety codes, making updates more extensive and costly.
The gap between original construction and today's latest building codes can be wide, making rebuilds more expensive. With Slide's comprehensive ordinance or law coverage, you can confidently bridge that gap without financial strain.
When Ordinance or Law Coverage Applies
This coverage comes into play after a covered loss where one of the following scenarios apply:
- Local ordinances require undamaged portions to be demolished.
- Building codes require upgraded materials or systems during repairs.
Why Understanding Ordinance or Law Coverage Matters
Homeowners insurance protects against more than visible damage. Ordinance and law coverage ensures you can rebuild safely, legally, and without paying out of pocket for additional upgrades to get your home up to code.
Stay Protected With Slide Insurance
Rebuilding your home means more than restoring what was lost—it means meeting today’s latest building codes. The Slide team is here to help ensure your policy includes the right insurance coverages for your unique needs, including ordinance or law protection, so you’re never caught off guard.
With our streamlined quoting process and expert guidance, getting the right coverage is simple and stress‑free. Get a custom homeowners insurance quote with Slide today and start your coverage with confidence.