07/28/2026
Why Ordinance & Law Coverage Is a Really Important Part of Your Homeowners Policy
Many homeowners are told that removing certain coverages will lower their insurance premium. While that may save a few dollars each month, it can end up costing thousands of dollars when a claim happens.
One coverage that is often overlooked is Ordinance & Law (Building Code) Coverage.
When your home is damaged by a covered loss, your insurance company generally pays to restore your home to its pre-loss condition. However, if current building codes require additional work that wasn’t part of the original construction, those extra costs may not be covered unless you purchased Ordinance & Law coverage.
Here’s an example:
A hailstorm damages your roof.
Your insurance company agrees to replace it, but today’s building code requires:
* Ice and water shield
* Drip edge
* Additional ventilation
* Decking upgrades
* Other code-required improvements
Without Ordinance & Law coverage, you may be responsible for paying for those required upgrades yourself.
That could mean an unexpected bill of $5,000, $10,000, or even more, depending on your home and local building codes.
Compare that to the cost of the coverage.
For many homeowners, adding Ordinance & Law coverage costs only a few dollars per month.
Saving $5 or $10 a month may sound appealing, but it doesn’t make much financial sense if it leaves you responsible for thousands of dollars after a covered loss.
Insurance isn’t just about having the lowest premium—it’s about protecting yourself from unexpected financial burdens.
Ask your insurance agent these questions:
* Do I have Ordinance & Law (Building Code) coverage?
* If not, how much would it cost to add it?
* What building code upgrades would I have to pay for myself if I don’t have this coverage?
These are simple questions that can make a huge difference when you file a claim.
