Building codes and construction requirements change over time. If an older home is damaged badly enough to rebuild, you may be required to bring portions of the home up to current code, which can cost more than simply replacing what was there. Ordinance or Law coverage helps pay for those additional costs.
Why It Matters
Without Ordinance or Law coverage, your policy may help pay to rebuild the home as it was before the loss, but not necessarily the additional cost of meeting today's building codes. That could include updated electrical, plumbing, or structural requirements, depending on the nature of the loss and the applicable codes.
Understanding how much Ordinance or Law coverage your policy provides is an important part of making sure your homeowners insurance reflects the true cost of rebuilding your home.
Especially for Older Homes
The older the home, the greater the likelihood that building codes have changed since it was constructed. If rebuilding is required after a covered loss, those additional costs can add up quickly, making it important to understand how much Ordinance or Law coverage your policy provides.
During a coverage review, I'll explain how much Ordinance or Law coverage your policy provides and help you determine whether it's appropriate for your home.
