Coverage Types
Ordinance or Law Coverage
Definition
Coverage that pays for the increased cost to rebuild or repair a property to comply with current building codes and ordinances that were not in effect when the structure was originally built. Includes three components: coverage for the loss in value of the undamaged portion of a building that must be demolished, the cost of demolition, and the increased cost of construction to meet current codes.
In Zach’s Words
“Here's a scenario I see in the Bay Area all the time: your 1950s home gets major fire damage, and now the city says you need to rebuild to 2026 code — new electrical, seismic upgrades, energy-efficient windows, the works. Your standard policy only pays to rebuild what was there before. Ordinance or law coverage picks up the extra cost of bringing everything up to current code. If your home is more than 20 years old, this coverage is essential.”
— Zach Nadler, CIO