Ordinance or Law coverage is one of the most overlooked yet potentially critical endorsements available on homeowners insurance policies. Without it, you could face tens of thousands of dollars in unexpected out-of-pocket costs when rebuilding after a covered loss.

What Is Ordinance Or Law Coverage? It is an optional endorsement that covers the additional costs you incur when rebuilding or repairing your home to comply with current building codes after a covered loss.

Coverage typically consists of three parts: Coverage A pays for the value of undamaged portions that must be demolished due to ordinance requirements. Coverage B covers demolition costs. Coverage C pays the additional cost to rebuild according to current building codes.

Common Building Code Changes require electrical panel upgrades, updated plumbing systems, enhanced insulation, energy-efficient windows, and structural reinforcements that weren’t required when older homes were built.

Coverage Limits: Offered as 10%, 25%, or 50% of your dwelling coverage. Cost is typically $50–$150 annually for 25% coverage.

Who Needs This? Owners of homes built before 1990, properties in areas with strict building codes, homes with outdated electrical or plumbing systems, and historic homes.

Contact Daly & Alexander Insurance at 912-352-1400 to add Ordinance or Law coverage to your homeowners policy.