Ordinance or Law Coverage
Definition:
Insurance that pays for extra costs needed to bring damaged property up to current building codes.
Explanation:
Standard policies cover restoring the property to its previous state, but not code upgrades. Ordinance or law coverage fills this gap.
Example:
If a fire damages part of your home and current code requires a full electrical upgrade, ordinance or law coverage pays for it.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.