What Is the "Ordinance or Law Coverage"?
Updated 15 days ago (March 6, 2026)
If you need to replace an old building with a new building after a fire or other damage, then the simple replacement coverage of the existing building will not be enough. The key issue is that the law requires the building to be stronger, safer, and more fire-resistant. As a result, you'll need to upgrade the new building rather than just replacing the old building. To deal with this situation, purchase an insurance plan that pays for replacement costs and pays for the costs of upgrades. This type of insurance is called "Ordinance or Law Coverage". This insurance is seldom covered by your existing insurance policy and you should specifically request it.
Legal Disclaimer: Tellus provides this content for informational purposes only. This is not legal advice. Laws vary by state and locality, and regulations may have changed since this article was published. Consult a qualified attorney for guidance specific to your situation.
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