Ordinance & Law Coverage for Apartments: Why It Matters After a Claim
- Nate Jones, CPCU, ARM, CLCS, AU
- 5 days ago
- 2 min read
When an apartment building suffers a major loss—such as a fire or storm—repairing the damage isn’t always as simple as rebuilding what was there before. Local building codes often require upgrades, and those costs are not covered by standard property insurance. This is where ordinance and law coverage becomes essential.
Understanding this coverage can save apartment owners from unexpected out-of-pocket expenses after a claim.
What Is Ordinance & Law Coverage?
Ordinance and law coverage helps pay for the increased cost of construction when rebuilding or repairing a property to meet current building codes, zoning laws, or safety regulations.
Why Apartment Owners Are at Higher Risk
Apartment buildings—especially older ones—are more likely to face mandatory upgrades after a claim, including:
Electrical system updates
Plumbing replacements
Fire sprinkler or alarm system installations
ADA compliance upgrades
Local building departments and code enforcement agencies often require these changes before a property can be reoccupied. You can find more information on building code standards through the International Code Council.
What Ordinance & Law Coverage Typically Covers
Demolition Costs
If part of a building must be torn down to comply with code requirements, ordinance and law coverage can help pay for demolition expenses.
Increased Construction Costs
This includes higher material and labor costs required to meet updated codes, such as fire-resistant materials or energy-efficient systems.
Loss of Undamaged Portions
In some cases, undamaged parts of the building must be removed to comply with current laws. Ordinance and law coverage can help cover those losses.
What Ordinance & Law Coverage Does NOT Cover
Routine maintenance or cosmetic upgrades
Voluntary renovations not required by law
Damage from excluded events, such as floods without separate flood insurance learn more at FEMA’s National Flood Insurance Program
Code upgrades unrelated to a covered loss
Why This Coverage Matters After a Claim
Without ordinance and law coverage, apartment owners may face:
Delayed reopening of units
Significant out-of-pocket upgrade costs
Extended loss of rental income
This coverage works hand-in-hand with property and loss of rental income insurance to ensure faster recovery.
How Wexford Insurance Can Help
At Wexford Insurance, we help apartment owners evaluate ordinance and law exposure and add the right coverage to their commercial property policies—especially for older or multi-unit buildings.
