HOMEOWNERS · BUILDING CODE & LAW AND ORDINANCE COVERAGE

Does Homeowners Insurance Cover Building Code Upgrades?

By Nelson Avila, Licensed Florida Public Adjuster (License G332385) · Florida Certified Contractor · Property Insurance Appraiser & Umpire
Homeland Public Adjusters · Last reviewed: November 2026

Building permit document with house plans

Yes, through law and ordinance coverage. In Florida, a homeowners policy includes law and ordinance coverage of 25% of the dwelling limit unless you rejected it in writing, and insurers must offer 25% or 50% (Fla. Stat. §627.7011). That coverage pays the extra cost of repairing your home to current building code after a covered loss.

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What building code upgrade costs are

When a damaged home is repaired, the local building department can require the repaired work to meet the current Florida Building Code, not the code in force when the house was built. That can mean work the old code never required, and it costs more than putting back what was there before.

A policy without law and ordinance coverage does not pay those extra costs: Florida law describes that kind of policy as excluding the costs necessary to meet applicable laws and ordinances regulating the construction, use or repair of the property (§627.7011(1)(a)).

Florida’s law and ordinance rules

The offer: before issuing a homeowners policy, the insurer must offer law and ordinance coverage limited to 25% or 50% of the dwelling limit, as the policyholder selects (§627.7011(1)).
The default: unless the insurer has your written refusal, on a form approved by the Office of Insurance Regulation, the policy is deemed to include law and ordinance coverage of 25% of the dwelling limit (§627.7011(2)).
How it is paid: the insurer must first pay at least the actual cash value of the loss, less the deductible, and pays the remaining amounts needed for the repairs as the work is performed (§627.7011(3)(a)).

Call Homeland first. We read your declarations page for the law and ordinance limit, get the building department’s requirements in writing, and price every code item separately in the estimate, so the code upgrades are claimed under the coverage that pays for them.

How Homeland claims code upgrade costs

Code upgrade items are easy to miss when an estimate only prices the damage. Homeland’s adjusters scope the repair the way a builder does: Nelson Avila is a Florida Certified Residential Contractor (CRC1331322), and the estimate lists the code-required work line by line, next to the permit requirements that make it necessary. We track the actual cash value payment and each payment released as the work is done.

In New Jersey, Homeland reads your policy’s ordinance or law provision and endorsements, and claims every code cost they cover.

Frequently asked questions

Does homeowners insurance pay for building code upgrades?

Yes, through law and ordinance coverage. In Florida, a homeowners policy includes it at 25% of the dwelling limit unless you rejected it in writing (Fla. Stat. §627.7011(2)).

How much law and ordinance coverage do I have?

Florida insurers must offer 25% or 50% of the dwelling limit. Your declarations page shows which one you carry, and Homeland reads it for you.

Does the insurer pay code upgrade costs up front?

It must first pay at least the actual cash value of the loss, less the deductible, and it pays the remaining amounts for the repairs as the work is performed (Fla. Stat. §627.7011(3)(a)). Homeland tracks every payment.

Can I add law and ordinance coverage after a loss?

No. The coverage in place on the date of the loss is what pays, so Homeland checks the law and ordinance limit on every claim.

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