Ordinance or Law Coverage
Definition. Ordinance or Law coverage pays the increased cost of rebuilding to current code when an older building is damaged.
Also known as: Ordinance and Law, Building Code Coverage
Standard Commercial Property pays only to rebuild to the original (pre-damage) specification. Building codes change; rebuilding usually requires costlier modern materials (electrical, plumbing, ADA, energy code). Ordinance or Law covers that uplift.
Example
1970s restaurant kitchen fire; rebuild required modern fire-suppression + ADA upgrades. Standard Property covered original kitchen; Ordinance or Law covered the $40K code-uplift difference.
Sources cited
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Reviewed by California-licensed Property & Casualty insurance agent
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