Florida Building Codes and Your Insurance

Do You Need Ordinance or Law Coverage?

If your commercial building was damaged by a storm or fire, would your insurance pay to rebuild it the way it was, or the way the law now requires?

In Florida, where building codes are among the strictest in the country, this isn't just a hypothetical question. Ordinance or Law coverage is designed to help cover the extra cost of rebuilding up to current code, something standard commercial property insurance doesn’t offer by default.

What Is Ordinance or Law Coverage?

Ordinance or Law coverage (also known as Building Code Upgrade Coverage, Code Compliance Coverage, or Demolition and Increased Cost of Construction Endorsement) is an optional endorsement that protects you from additional expenses that may arise after a covered loss when local building codes require:

• Demolishing undamaged parts of a structure
• Rebuilding to meet current, updated codes
• Upgrading electrical, plumbing, HVAC, or structural systems

These required upgrades can be costly. If your policy doesn't include Ordinance or Law coverage, you could be responsible for paying these extra costs out of pocket.

Why This Matters in Florida

Florida regularly updates its building codes to address safety concerns due to extreme weather events like hurricanes, flooding, and high winds. Even if your building is in good condition, any reconstruction must meet the most current standards.

Example: A storm damages the roof and part of the second floor of your commercial space. The structure was up to code when built, but new regulations now require hurricane clips, updated elevation standards, or stronger glass. Your standard policy may only cover the cost to replace what was damaged, not to upgrade materials to meet the new requirements.

Make Sure You’re Covered

Ordinance or Law coverage is typically an endorsement, meaning it's optional and not included by default. Check your current policy or speak with your insurance advisor to verify:

• Do you have it?
• What are the limits?
• Are all three parts of the coverage included (demolition, increased cost of construction, and undamaged portion)?

If you own or manage commercial property in Florida, it's worth asking: Could I afford to rebuild to code if something happened tomorrow?

At Sterling Meadows Insurance, we help Florida business owners identify potential coverage gaps before they become costly surprises. Our team can review your current policy, explain where Ordinance or Law coverage fits in, and connect you with the right protection to keep your property and your finances secure. If you're not sure whether your building is fully covered for code upgrades, we'll guide you through the options so you can rebuild with confidence, no matter what tomorrow brings.