Ordinance or Law coverage is an important part of property insurance that can help pay the additional costs required when a damaged building must be repaired or rebuilt to comply with current building codes. For owners of older commercial buildings and aging roofs in Florida, this coverage can become especially important after a hurricane, severe storm, fire, or other covered loss.
The key issue is simple: building codes change over time, but older roofs were built under the requirements that existed when they were installed. When an older roof suffers significant damage, today’s code requirements may require more work than simply replacing the damaged materials.
How Does Ordinance or Law Coverage Work?
Standard property insurance generally covers the cost of repairing damage caused by a covered event, subject to the policy’s terms, limits, and exclusions. However, the additional cost of bringing an older structure into compliance with current codes may not automatically be covered.
Ordinance or Law coverage is designed to address that gap.
For example, suppose a commercial building has an older roofing system that is damaged by a hurricane. The original roof may no longer meet current requirements for wind resistance, attachment, flashing, insulation, drainage, or other components. If the applicable building code requires upgraded construction during the repair or replacement, the owner could face costs significantly higher than simply replacing the damaged portion.
Florida’s insurance guidance explains that Law and Ordinance coverage can help with increased costs associated with complying with current building codes, including circumstances where portions of an existing structure must be demolished to meet current requirements.
Why Is This Especially Important for Older Roofs?
Older roofs are more likely to be affected by code changes because roofing standards evolve. Requirements for wind resistance, fastening, materials, installation methods, and other components can be different from those in effect when the roof was originally installed.
Florida’s existing-building provisions can also affect the scope of a roof project. For example, Florida Building Code provisions have historically included a rule limiting the amount of an existing roof that can be repaired, replaced, or recovered within a 12-month period unless the applicable roof or roof section is brought into compliance with current code, subject to specific exceptions.
That means what initially appears to be a relatively small storm-damage repair can sometimes develop into a much larger code-compliance project.
What Costs Can It Help Address?
Depending on the specific insurance policy and coverage limit, Ordinance or Law coverage may help with additional expenses such as:
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Upgrading roofing materials or installation methods required by current code
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Additional demolition or removal required by code
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Replacing components that must be upgraded as part of the permitted work
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Increased construction costs associated with code-required improvements
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Certain costs associated with bringing the affected portion of the building into compliance
Coverage varies substantially by policy, so building owners should review the actual endorsement, limits, exclusions, and conditions with their insurance professional.
Why Commercial Building Owners Should Review This Before a Loss
For an older commercial property, the difference between the cost of restoring a roof to its previous condition and the cost of rebuilding it to today’s requirements can be substantial.
Florida’s insurance statutes specifically address Law and Ordinance coverage, including requirements concerning coverage offers and available limits for certain residential policies. Commercial policies can have different terms, so commercial property owners should not assume that a residential coverage rule automatically applies to their building.
Before a major storm occurs, property owners should know the age and construction history of their roof, understand applicable building-code requirements, and review their insurance policy with a qualified insurance professional.
The Bottom Line
Ordinance or Law coverage helps protect property owners from the additional costs created when current building codes require more work than simply repairing an older, damaged roof. It is particularly important for older commercial roofs because the original construction may no longer satisfy today’s Florida requirements.
At Shieldline Roofing, we help commercial property owners evaluate existing roof conditions, identify potential code-compliance considerations, and understand the scope of roof restoration or replacement projects. If your commercial roof is older or has sustained storm damage, a professional roof assessment can help you determine what work may be required before repairs begin.
Related Questions
- Does insurance cover commercial roof replacement in Florida?
- What if the insurer’s scope omits code-required upgrades?
- Does the 25% rule apply if the damage is from a hurricane?
- Will my insurance cover a roof recover or tear-off?
- What is business interruption coverage in relation to roof damage?
- What is the difference between a percentage deductible and a flat deductible?
Commercial Roof Repair in Florida
