Ordinance or Law Coverage
Insurance that covers the increased costs of rebuilding or repairing a home to comply with current building codes and regulations.
Detailed Explanation
When older homes are damaged, repairs often must meet updated building codes that weren't in place when the home was built. Standard dwelling coverage doesn't include these upgrade costs, making ordinance or law coverage valuable for older homes.
Practical Example
After a fire damaged James's 1960s home, ordinance or law coverage paid for the additional $20,000 needed to install updated electrical systems, fire-rated drywall, and energy-efficient windows required by current building codes.
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