Ordinance or Law Coverage – What is it?

This pays for the additional costs of repairing or rebuilding a damaged home to meet current building codes, which standard policies usually do not cover.

Have a 60 amp service? In a fire, you’d have to upgrade the panel to a minimum 100 amp out-of-pocket without this coverage. The same goes for ice and water shield on a roof. Code upgrades are the financial cost of the policyholder without this added coverage.

HO is Home Owners & DP is Dwelling Policy

HO policies typically come with Ordinance or Law Coverage.  An HO policy is a “Home Owners” policy meaning that the property owner of record resides at the property.

Many insurance carriers have a coverage limit on the Ordinance or Law Coverage.  It could be a $10,000 coverage cap on an HO policy.  This pays for the additional costs of repairing or rebuilding a damaged home to meet current building codes, which standard policies usually do not cover (up to the limit of the coverage).

If you have a fire with a 60 amp service, you’d have to upgrade the panel to a minimum 100 amp out-of-pocket without this coverage.

Ice and Water Shield on roofing is also part of code compliance measures.  Although Ice & water is IBC (International Building Code) and Nebraska Residential Building Code, some local ordinances do not enforce it.  

Ice and Water Shield is now required in North Platte, NE as of January 20, 2026.  

DP Policies Require Endorsement

A DP policy is tailored for rental, vacant, or non-owner-occupied homes.  These are typically the policies that landlords have on property that they rent out.

With a Dwelling Policy, Ordinance or Law Coverage is NOT part of standard coverage.  As such, it would need to be purchased as an additional coverage endorsement.  

Cost benefit analysis is needed to determine if the cost of adding the coverage is worth the financial protection in case of a loss.  The endorsement coverage cap on a DP is typically a percentage of the main coverage limit.  

This analysis is something you’d need to involve your insurance agent in.  They are the expert on your insurance policy and their licensing requirements with the State of Nebraska are quite extensive.

~~~~~~~~~~~~

This blog is NOT legal advice.  It is not insurance policy advice.  You should consult and attorney and/or a licensed insurance agent for your specific situation.