Ordinance or Law Coverage

The International Risk Management Institute (IRMI) defines ordinance and law coverage as “coverage for loss caused by enforcement of ordinances or laws regulating construction and repair of damaged buildings.” These coverages applies whether you suffer a partial or total loss to the structure. This valuable coverage can save you thousands of dollars in upgrades you would otherwise pay out-of-pocket.

It’s possible this is a coverage you’re unfamiliar with, and how it could impact your home or your business. That’s right, ordinance or law coverage is available on both commercial property policies as well as homeowners policies via endorsement.

For the purpose of this post, we will be focusing on the Homeowners Policy. To better understand how ordinance or law coverage applies, let’s first introduce an example:

You wake up Monday morning after a storm passed through, and your Oaktree has fallen into your dining room. Significant costs will be associated with the repair of your shingle replacement, roof straps, and much more. Alas, ordinance or law coverage pays for those significant costs. Without this important endorsement, you must pay the additional costs associated with the loss.

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

Cost to Upgrade: In the event your home is fully or partially destroyed by a covered loss event, these coverages will help to cover the costs of updating your house to ensure it meets current building codes.

Rebuilding Expenses: If your home needs to be replaced, repaired, or upgraded after a loss, these coverages will help pay for the costs needed to meet current building laws or ordinances.

Ordinance or law coverage offers a simple and affordable solution to protect you and your property, so you can rest assured knowing that you will be protected.  Not all policies are the same, so please contact us today for a consultation with your Personal Risk Advisor.


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