What does Ordinance or Law coverage under a dwelling policy pay for?

Ordinance or Law coverage under a dwelling policy specifically addresses the increased costs of repairs or rebuilding that arise from changes in local ordinances or building codes that take effect after a loss. For instance, when a home is damaged, the process of repairing it may involve compliance with new regulations that were not in place when the home was originally built. This can lead to higher costs for materials and labor, which are not covered by a standard policy that only compensates for the replacement of the damaged items to their prior condition.

This coverage ensures that property owners are financially protected against the additional expenses they might incur, which can be significant if the local government enforces stricter safety, zoning, or environmental regulations. It acts as an important safeguard, especially in areas that frequently update their building requirements in response to safety or environmental considerations.