What is ordinance or law coverage?

Insurance companies may offer optional building code insurance coverage, also called "ordinance or law coverage," which can help cover the cost of bringing your home up to code if it's damaged by a covered peril. Local building codes may mandate upgrades or changes that weren't required when your home was originally built. A standard homeowners insurance policy typically won't pay to bring your home up to code.

3 minute to read

Explore Progressive's editorial standards for Answers articles to find out why you can trust the insurance information you find here.

How does ordinance or law coverage work?

An ordinance is a law or regulation enacted by a municipality or county government, created to address matters of local concern not covered by state or federal laws, such as zoning regulations. You may need to bring a home up to code based on an ordinance, which means your city or local government requires home repairs to align with modern building codes.

Building code upgrade coverage, also referred to as ordinance or law coverage, may pay for the additional costs you incur during the construction, demolition, or repair of a damaged covered structure due to changes in laws and regulations. If a covered peril causes damage to your home, building code coverage can pay for the repairs needed to bring your home back up to code, up to your coverage limit. A standard homeowners insurance policy may not offer this coverage.

When do you need building code protection?

Building code insurance coverage or ordinance or law coverage may be pertinent if you live in an older home that hasn't been updated to bring it up to the latest building codes. It's important to be aware of your city's building code requirements, especially for an older home. If you have a covered loss and the repairs require additional work to bring it up to code, you may be stuck paying out of pocket for the additional costs if you don't have this coverage.

What doesn't building code coverage cover?

Renovations, remodels, or routine maintenance likely won't be covered by building code insurance coverage. Suppose you're replacing your roof and discover you need to make structural changes to bring it up to code. In this case, the cost of bringing the roof up to code is your responsibility.

How can you tell if your home isn't up to code?

Consider contacting your local building inspection office or having your home inspected by a licensed professional or city inspector to determine if your home meets the current codes in your area.

Is there a coverage limit with ordinance or law coverage?

A building code coverage limit is typically some percentage – such as 10% or 25% -- of your dwelling coverage.

For example: if your dwelling coverage is $200,000 and you have a 10% ordinance or law policy, you may receive up to $20,000 to pay for any required upgrades as a result of a covered peril.

How do you get ordinance or law coverage?

Ask your agent or homeowners insurance company if they offer ordinance or law coverage. If it's available, it may be added as an endorsement or additional coverage to your existing homeowners policy.

Quote homeowners insurance online or call for advice

Learn more about home insurance policies.

Have more questions? Browse articles by insurance type

See all articles by product

Please note: The above is meant as general information to help you understand the different aspects of insurance. Read our editorial standards for Answers content. This information is not an insurance policy, does not refer to any specific insurance policy, and does not modify any provisions, limitations, or exclusions expressly stated in any insurance policy. Descriptions of all coverages and other features are necessarily brief; in order to fully understand the coverages and other features of a specific insurance policy, we encourage you to read the applicable policy and/or speak to an insurance representative. Coverages and other features vary between insurers, vary by state, and are not available in all states. Whether an accident or other loss is covered is subject to the terms and conditions of the actual insurance policy or policies involved in the claim. References to average or typical premiums, amounts of losses, deductibles, costs of coverages/repair, etc., are illustrative and may not apply to your situation. We are not responsible for the content of any third-party sites linked from this page.

THE #1 INSURANCE WEBSITE

Copyright 1995 - 2025. Progressive Casualty Insurance Company. All Rights Reserved.

We offer insurance by phone, online and through independent agents. Prices vary based on how you buy.

ΔDiscount varies and is not available in all states or situations.

Insurance carrier website ranking by Keynova Group – Q4 2024 Online Insurance Scorecard.

Progressive Home® policies are placed through Progressive Advantage Agency, Inc. with insurers affiliated with Progressive and with unaffiliated insurers. Each insurer is solely responsible for the claims on its policies and pays PAA for policies sold. Prices, coverages, and privacy policies vary among these insurers, who may share information about you with us. PAA's compensation from these insurers may vary between the insurers and based on the policy you buy, sales volume and/or profitability of policies sold. See a list of all the insurers that write Progressive Home policies, or contact us for more details.