Ordinance or law coverage is a critical insurance endorsement that assists landlords when a property is damaged and must be brought up to current building codes during repairs. If a property is significantly damaged, local building departments often mandate that the entire structure—not just the damaged section—be upgraded to meet modern codes, such as electrical, plumbing, or ADA compliance. Without this coverage, the landlord would be personally responsible for these substantial additional costs.
How It Applies to Florida Landlords
Florida building codes, particularly those related to wind mitigation and hurricane hardening, change frequently. If you own an older rental property, a major claim could trigger a requirement to update the entire electrical system or roofing to current code standards. Ordinance or law coverage prevents the landlord from facing massive out-of-pocket expenses for these regulatory upgrades after a disaster. It is an essential component for any Florida property portfolio due to strict statewide building regulations.
Key Takeaways
- Covers costs to upgrade property to current building codes.
- Essential for properties older than current code standards.
- Protects against massive out-of-pocket expenses after damage.
- Often added as an endorsement to a dwelling policy.