Ordinance or law coverage
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What is ordinance or law coverage?

Ordinance or law coverage definition

You may have heard of the term ordinance or law coverage in relation to commercial property insurance, but many people are unaware that this type of coverage can also be a part of your homeowners insurance policy. Ordinance or law insurance covers the cost to rebuild a home that has been destroyed, as well as the cost to upgrade a home so that it meets the most up-to-date building codes after a covered loss. 

Types of coverages

There are three types of coverages that fall under ordinance or law insurance:

  1. Cost to upgrade: In the event your home is fully or partially destroyed by a covered loss event, ordinance or law coverage will help to cover the costs of updating your house to ensure it meets current building codes. 
  2. Rebuilding expenses: If your home needs to be replaced, repaired or upgraded after a loss, ordinance or law insurance will help pay for the efforts needed to meet current building laws or ordinances.

How ordinance or law coverage works

In order to determine if you need ordinance or law coverage, consider the age of your home. If you live in an older home and experience a loss, for instance, you may be more likely to have to upgrade to current building codes compared to living in a newer home that already meets up-to-date requirements. 

Learn more about different types of homeowners insurance coverages today to decide what’s best for you.

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