ordinance or law, insurance question, homeowners policy

What is ordinance or law coverage on my homeowner’s policy?

Ordinance or law is a specific coverage that applies to most homeowner’s insurance policies, but what does it mean?

This coverage applies to the situation where a covered loss occurs and the building or structure is having to be rebuilt, repaired, or demolished in accordance with the enforcement of any building code, law or ordinance that governs any building, repair, or demolition. 

OK… so what did you just say?

Let’s say that you are the owner of a house with knob and tube wiring but after a fire at the home the local building code requires the installation of Romex with circuit breakers.  The ordinance or law coverage on your policy provides money for the upgrade in electrical service.  In the ISO forms, coverage is limited to 10% of the replacement cost of the home. 

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