How do I prove a code upgrade is required?

Get the requirement in writing from the building department or a permit review, and have the contractor line-item it separately.

Is it automatic in New York policies?

No. It is often a limited endorsement or a percentage sublimit. Some policies exclude it entirely.

Does it cover the whole house?

Only the portions affected by the covered loss and the code requirements triggered by that repair.

What Is Ordinance or Law Coverage?

Ordinance or law coverage pays the added cost of bringing damaged parts of your building up to current code when you repair a covered loss. Base policies pay to restore what existed. When the building department requires updated wiring, hurricane clips, egress windows, insulation values, or demolition of undamaged portions, that extra cost falls under ordinance or law coverage - often a sublimit of 10 to 25 percent of the dwelling limit. Older Long Island housing stock triggers it frequently. Call 516-410-0164 for a free claim review.

5 min to read

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Written by: Kevin Godfrey, President, Long Island Public Adjusters, LLCNYS Public Adjuster License #: PA-1156995

Key takeaways

•Base coverage restores what existed; ordinance or law pays code-required upgrades.
•It typically has three parts: undamaged portion, demolition cost, and increased cost of construction.
•Sublimits are commonly 10 to 25 percent of the dwelling limit - check your declarations.

Featured article image of a public adjuster assisting a homeowner

The three parts

Coverage A - undamaged portion: loss in value of the undamaged part of the building that code requires you to remove
Coverage B - demolition cost: the cost of tearing down and hauling away that undamaged portion
Coverage C - increased cost of construction: the extra cost of rebuilding to current code

Where it comes up on Long Island

Knob-and-tube or ungrounded wiring found during fire repairs
Older plumbing that cannot be legally reconnected
Coastal wind-resistance requirements in South Shore rebuilds
Egress, stair, and railing requirements in older two-family homes
Elevation and flood-zone requirements after a flood loss
Insulation and energy code values on any substantial wall reconstruction

How to claim it

Ask the building department for the requirement in writing. Have the contractor split the estimate into like-for-like restoration and code-driven upgrade. Submit both with the permit documentation and cite the ordinance or law endorsement on your declarations page.

For official guidance on property insurance and claim rights, visit the New York State Department of Financial Services.

Need Help With Your Claim?

Get a free consultation with our licensed public adjusters.

Free Claim Review 516-410-0164