By Eli Goins · FL DFS #P159790 · Reviewed: · 1 min read
Short answer: Ordinance or Law coverage pays the additional cost of rebuilding to current building code when a covered loss triggers repairs. Most Florida policies include a small default amount, often a percentage of dwelling coverage, which is frequently insufficient for older homes with pre-code roofing, electrical, and plumbing. Higher limits are usually available at renewal.
Why it matters
- Old Florida homes have pre-code roofing, electrical, plumbing
- Code upgrades triggered by storm repairs can exceed $30,000 on older homes
- Without this coverage, the insured pays out of pocket
Three parts (A, B, C)
- A: Loss to undamaged portions of building from enforcement of code
- B: Demolition / debris removal of undamaged portions
- C: Increased cost of construction to code
Policy amounts
Default 10% of dwelling is often insufficient. Higher limits (25%, 50%, 100%) are usually available at renewal.