What is ‘Building Ordinance or Law’ coverage on my Homeowners insurance policy?

‘Building Ordinance or La’w coverage in Homeowners insurance is designed to provide protection in situations where rebuilding or repairing a damaged home requires compliance with current building codes or laws that may have changed since the home was originally constructed.

One of the largest benefits of this coverage is to help cover code upgrades. If your home is damaged and needs to be repaired or rebuilt, building codes may have changed since the home was originally built. ‘Building Ordinance or Law’ coverage helps cover the additional costs of bringing the home up to current code requirements. This could include upgrades such as electrical wiring, plumbing, required solar panels or structural changes mandated by current building codes.

‘Building Ordinance or Law’ coverage is important because it helps ensure that you have adequate protection in the event of a loss. Without this coverage, you could be responsible for paying out-of-pocket for the additional costs associated with bringing your home up to code, which can be significant.