When would you use law and ordinance coverage on an insurance policy?

Law and ordinance coverage on an insurance policy is typically designed to provide additional coverage for the increased costs of repairing or rebuilding a property to comply with building codes and ordinances that may have changed since the property was originally built or last renovated.

An example of when you might need to use this coverage is if your property is damaged by a covered peril, such as a fire or windstorm, and the cost to repair or rebuild the property is higher than the original cost due to changes in building codes and regulations. For instance, if your building was constructed before a new building code requirement was introduced, and the code requires additional safety features or construction standards, the additional costs of bringing the building up to code may be covered by the law and ordinance coverage in your insurance policy

Law and ordinance coverage on a homeowners insurance policy provides protection in the event that local building codes require upgrades or repairs to a home that has been damaged by a covered peril. An example of when you would use this coverage is if your home is damaged by a fire, and local building codes require that the electrical system and plumbing be upgraded to meet current standards. Without law and ordinance coverage, you would be responsible for the additional cost of these upgrades, but with this coverage, your insurance company would cover the cost up to the policy limits.