Ordinance or law
Home coverage extension for extra costs to meet current building codes during rebuild.
Plain definition
Ordinance or law coverage pays increased costs to repair or rebuild to current building codes after a covered loss—demolish undamaged portions, upgrade wiring, or install sprinklers where required. Base dwelling limits may not include these extras without an endorsement percentage.
Why it matters
Older homes rebuilt to 2020s code can cost far more than pre-loss square footage estimates suggest.
Example
Fire destroys half a 1960s home; city requires full electrical rewiring and egress windows. Ordinance or law pays the code-upgrade portion up to the endorsement limit.
Common misunderstanding
Replacement cost on dwelling is not automatically ordinance coverage—you often buy 10–25% additional limits explicitly.
Policy language always controls. This is educational content, not advice. See our disclaimer.