What Is Ordinance or Law Coverage?
Ordinance or law coverage is a property insurance provision that pays the extra cost of rebuilding a damaged structure to current building codes. A standard policy generally pays only to restore what was there before. But when codes have changed, rebuilding legally may cost more — and ordinance or law coverage fills that gap.
What It Typically Covers
- Increased cost of construction to meet current codes when repairing
- The cost to demolish and remove the undamaged portion a code requires be torn down
- The lost value of the undamaged portion that must be demolished
Why It Matters in Florida
Florida's building codes are among the nation's strictest, especially for wind and flood resistance, and they have tightened over time. After a hurricane, an older home often cannot legally be rebuilt the same way — new roof, elevation, or structural standards may apply, adding substantial cost. Without ordinance or law coverage, the owner pays that difference out of pocket. Florida owners of older homes should confirm whether their policy includes this coverage and in what amount.
Related Terms
- Replacement Cost — What a standard policy pays to rebuild
- Certificate of Occupancy — Required after a code-compliant rebuild
- Zoning — Part of the code framework rebuilding must satisfy
Barnes Walker
Barnes Walker's attorneys handle Florida property-insurance and storm-loss disputes for owners. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC