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Ordinance or Law · Code upgrades · 10% limit · Undamaged parts

Ordinance or Law calculator: will your policy pay for code upgrades?

When you repair after a fire or storm, the building department can require work that was not damaged and was legal when the house was built: re-sheathing over old plank decking, ice barrier and drip edge, AFCI breakers, linked smoke alarms, sometimes tearing down and rebuilding an undamaged section. Your dwelling coverage does not pay for that. Ordinance or Law does, and on a standard homeowners policy the limit is only 10% of Coverage A. This calculator prices the upgrades and shows the gap.

Reviewed 25 October 2026 · Written by Mantu Kumar

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Written and maintained byMantu Kumar

Evidence review18 October 2026

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Key facts at a glance

• Standard limit: 10% of Coverage A on a standard homeowners form; $35,000 on a $350,000 home.
• Endorsement: raises it to 25%, 50% or 100%, usually for a small share of the premium.
• Older homes need more: houses 20 or more years old often need far more than 10%.
• Undamaged parts ordered torn down or brought to code are the largest exposure.
• Payment is often made only after the code work is actually done.

Policy forms differ by insurer and state. Read the Ordinance or Law section and the declarations page.

2026 planning ranges

1. 1Re-sheathing & nailing
2. 2Ice barrier & drip edge
3. 3Tempered/egress windows
4. 4AFCI/GFCI or new panel
5. 5Smoke & CO alarms
6. 6Plumbing code items
7. 7Energy-code insulation
8. 8Undamaged part torn down
9. 9Permit + plan review

Ordinance or law: Standard form: 10% of Coverage A Endorsement: 25%, 50% or 100% Pays code work, not the damage

• Damage is Coverage A.
• Code is Ordinance or Law.
• Older homes need a higher limit.

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Diagram, part by part

Ordinance or Law: every numbered part explained

The ordinance or law drawing above has 9 numbered parts, from Re-sheathing & nailing to Permit and plan-review fees. Each card below frames one of them, and after you run the calculator it shows what that part adds to your estimate.

1. 1 Re-sheathing & nailing

   Older roofs often have spaced plank boards with gaps between them. Current code usually wants solid plywood or OSB sheathing under new shingles, and in high-wind areas tighter nailing patterns as well. The cost scales with the number of roofing squares replaced.

   What moves it: Roof squares replaced, plank or solid decking, and wind-zone nailing rules.

   On the quote: Ask the roofer to list re-sheathing and any upgraded nailing as code items, separate from the storm damage.

2. 2 Ice barrier & drip edge

   Ice barrier membrane along the eaves and metal drip edge at the eaves and rakes are now required in many areas where the old roof had neither. They are code upgrades, not storm damage, so they come from Ordinance or Law coverage.

   What moves it: Eave and rake length, and your local code requirements.

   On the quote: Ask the roofer to cite the code requirement and list ice barrier and drip edge on their own lines.

3. 3 Tempered/egress windows

   When windows are replaced, codes may require tempered glass near doors, tubs and floors, or a larger bedroom opening for emergency escape. Those upgrades cost more than a like-for-like replacement and fall under Ordinance or Law.

   What moves it: How many windows are affected and whether openings must be enlarged.

   On the quote: Ask which windows need tempered or egress upgrades and why each one is required.

4. 4 AFCI/GFCI or new panel

   Rebuilt circuits usually need arc-fault and ground-fault protection. An old panel without room or compatible breakers may need to be replaced or the service upgraded, which can be the largest electrical code item.

   What moves it: How many circuits are rebuilt and the age and capacity of the panel.

   On the quote: Ask whether the inspector requires AFCI and GFCI only on rebuilt circuits or a panel upgrade.

5. 5 Smoke & CO alarms

   During a permitted repair, inspectors usually require hardwired smoke and carbon monoxide alarms that are interconnected so one sets off all. Older battery-only alarms rarely pass once walls are open.

   What moves it: Number of bedrooms, hallways and levels that need alarms.

   On the quote: Ask how many alarms are required and whether they are hardwired and interconnected.

6. 6 Plumbing code items

   Plumbing code items such as missing vents, backflow prevention and water heater strapping or expansion tanks may need to be brought up to date while walls are open for the repair.

   What moves it: Which fixtures are rebuilt and what the inspector flags.

   On the quote: Ask for each plumbing code item to be listed with the code section the inspector cited.

7. 7 Energy-code insulation

   Rebuilt walls and attics may need insulation brought up to today's energy code, which is often much higher than when the house was built. The added depth and material are a code cost, not storm damage.

   What moves it: Wall and attic area rebuilt and your climate zone.

   On the quote: Ask the contractor to separate code-required insulation from the damaged insulation being replaced.

8. 8 Undamaged part torn down

   If damage passes a threshold, often around 50% of the building's value, the city can order the undamaged part torn down and rebuilt to current code. That demolition and rebuild cost comes only from Ordinance or Law coverage.

   What moves it: The percentage of damage and your local substantial-damage rule.

   On the quote: Ask the building department for a written substantial-damage determination before demolition starts.

9. 9 Permit and plan-review fees

   $300–$1,500

   Permit and plan-review fees on the code-upgrade portion of the job can be claimed under Ordinance or Law. Larger rebuilds may also need stamped drawings, which add design fees before work can start.

   What moves it: Project size, your town's fee schedule and whether drawings are required.

   On the quote: Keep every permit and plan-review receipt so the code share of the fees can be claimed.

Rebuild to code

What the inspector will ask for on an older house

Codes change every few years. A house built in 1975 can pass inspection for decades, then need new decking, new wiring protection and new alarms the moment a permit is pulled to repair storm or fire damage.

Three code items that most often surprise owners. These close-ups are crops of the same AI-generated illustration.

01Plank decking

Gaps between old boards

Shingles need solid decking. Spaced boards from older roofs are covered with plywood or OSB, which is a code cost, not storm damage.

02Electrical panel

Arc-fault and ground-fault protection

Rebuilt circuits must meet current electrical code, which often means AFCI and GFCI breakers or a new panel.

03Permit card

Inspections in order

Each inspection can add requirements. Keep the card and the inspector’s notes; insurers often ask for them before paying code costs.

Before you sign a quote, verify these three details

Limit

Your Ordinance or Law percentage and dollar amount.

Scope

Which items are code, which are damage.

Proof

Permit, inspection notes and invoices.

Estimate the damage repair first →

What Ordinance or Law covers

A homeowners policy pays to repair damage the way the house was. Building codes, though, apply to the repair as it is done today. Ordinance or Law coverage fills the gap in three ways: the added cost of building the damaged part to current code, the cost to demolish undamaged parts the city orders taken down, and the cost to rebuild those undamaged parts. Coverage A pays none of it.

Common code upgrade costs (2026)

Worked example: a 1970s roof and kitchen after a fire

The 50% rule and undamaged parts

Many communities, especially in flood zones and older downtowns, require the whole building to meet current code once damage passes a share of its value, often 50%. This is called a substantial damage determination. When it happens, parts of the house that were never touched by the fire or storm may have to be rebuilt. That cost sits entirely in Ordinance or Law, and it is why owners of older homes are told to carry more than 10%.

Choosing a limit

• Homes under about ten years old are often fine at 10%.
• Homes 20 years and older, or in areas with recent code changes for wind, wildfire or flood, often need 25% to 50%.
• The increase is usually a small share of the premium. Ask your agent for the price at 25% and 50% side by side.
• Check whether your insurer already includes some code items, such as ice barrier, in the regular dwelling estimate.

Code upgrade (ordinance or law) cost by region

The calculator's default code upgrade (ordinance or law) scenario, repriced for each of its six regions. At the national average it runs $11,153 – $21,190; South / Lower Midwest is the lowest at $9,703 – $18,435, and West Coast metro is the highest at $14,499 – $27,547, a gap of about $6,954 at the midpoint.

What “Old plank decking with gaps” does to the price

Every other input stays at its default and only “Old plank decking with gaps” changes. The cheapest choice, No, solid decking, comes to $4,433 – $10,550; the most expensive, Yes, re-sheath with plywood or OSB, comes to $11,153 – $21,190.

What “Insulation brought to current energy code” does to the price

Every other input stays at its default and only “Insulation brought to current energy code” changes. The cheapest choice, No, comes to $11,153 – $21,190; the most expensive, Yes, rebuilt walls and attic, comes to $14,513 – $27,910.

Claim checklist: 6 items for code upgrades

Ordinance or law items are paid when they are shown to be required, not just recommended.

1. Ordinance or law limit. From your declarations page.
2. Code citations. The local code sections that require each item.
3. Building official letter. Or the permit corrections list.
4. Separate estimate lines. Code items priced apart from like-kind repair.
5. Photos of the old work. Showing what did not meet current code.
6. Completion proof. Many policies pay code items once the work is done.

How code items usually get paid

Ask the contractor to flag code items before walls are closed, so they can be photographed and documented.

Common mistakes that shrink the payout

• Not knowing your limit. Ordinance or law coverage is often a small percentage of Coverage A.
• Mixing code items into repairs. Separate lines make code items easier to approve.
• No citations. Upgrades are paid when shown to be required.
• Closing walls first. Code items need photos before they are covered.
• Assuming all upgrades are covered. Optional improvements are your cost.

Ways to get code items paid

Code items are paid when they are documented as required.

• Check the ordinance or law limit. Know how much is available.
• Get the corrections list. From the building department.
• Price code items separately. Clear lines.
• Photograph before closing walls. Proof of required work.
• Ask about extensions. If permits delay the job.
• Keep inspection records. Show the work was done.

Signs code upgrades will be large

Older homes face the biggest gaps.

• Old wiring. Knob-and-tube or no grounding.
• Plank roof decking. Needs sheathing.
• Flood zone. Elevation rules.
• No smoke alarms or GFCIs. Required on rebuild.
• Old energy standards. Insulation upgrades.

Sources and further reading

• Independent Insurance Agents & Brokers of America — Ordinance or law for homeowners
• ICC — 2021 International Residential Code, Chapter 9 Roof Assemblies
• City of Miami Beach — The FEMA 50% rule
• NAIC — Actual cash value vs replacement cost

Frequently asked questions