The Basics of Home Insurance – Ordinance or Law Coverage in Oklahoma

When Bryan’s 1970s ranch-style home caught fire, he thought his insurance would pay to rebuild. And it did—sort of. What Bryan didn’t know was that his policy didn’t cover the extra cost to bring the home up to current building codes.

Things like rewiring the electrical system, upgrading insulation, and installing new plumbing had to come out of his pocket. That added up to over $30,000.

This is where ordinance or law coverage steps in—and why more homeowners in Oklahoma need to know about it.

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What Is Ordinance or Law Coverage?

Ordinance or law coverage helps pay the extra costs of repairing or rebuilding your home to meet current codes after a covered loss. Building codes change all the time. What was “up to code” 30 years ago probably wouldn’t pass inspection today.

This part of your policy covers three main things:

• The cost to demolish undamaged parts of the structure (if the whole home has to be torn down)
• The added cost of rebuilding to current codes
• The cost to update partially damaged areas to match code

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Without it, your standard dwelling coverage might fall short.

​Why This Coverage Matters in Oklahoma

Older homes are everywhere in Oklahoma City, Edmond, Norman, and the surrounding towns. These homes are charming—but many don’t meet today’s codes.
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And Oklahoma is no stranger to major damage. Between windstorms, fires, and tornadoes, homes get hit with serious repairs every year. When that happens, city inspectors often require full compliance with updated code—especially for plumbing, electrical, and energy efficiency. That can cost thousands.

And that cost? It’s usually not included in a basic policy unless ordinance or law coverage is added.

What Kinds of Scenarios Trigger Ordinance or Law Coverage?

Here are a few real-life examples:
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Outdated Electrical SystemsSay your home has an old fuse box. After a kitchen fire, the inspector says you have to upgrade the entire electrical panel and wiring—even in parts of the house that didn’t burn. Your basic policy covers the damage—but not the code upgrades. Ordinance or law coverage helps with that.

Partial Loss That Triggers Full Tear-DownIf more than 50% of your home is damaged, your local ordinance may require you to tear the whole thing down and start from scratch. This is more common than most people realize. And it’s expensive.

Foundation or Roof RebuildsLet’s say a tornado rips off part of your roof. The local code now requires hurricane straps or upgraded underlayment. Without ordinance or law coverage, that’s coming out of your pocket.

​Do All Homeowners Need This Coverage?

If your home is newer—built in the last 10 to 15 years—you might not need much ordinance or law coverage. But if your home is older, especially pre-2000, it’s worth serious consideration.

​It’s especially helpful if:

• You’ve never fully updated plumbing or wiring
• Your roof or windows aren’t up to the latest standards
• You’re in a city with strict code enforcement
• You want to avoid surprise out-of-pocket costs during a rebuild

​How Much Does It Cost?

Adding ordinance or law coverage doesn’t usually cost a lot. Many carriers offer it as a percentage of your dwelling limit—like 10%, 25%, or 50%.

So if your dwelling is insured for $250,000, a 25% ordinance or law limit would give you an extra $62,500 for code-related upgrades.
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That small bump in premium can save you tens of thousands if disaster strikes.

Protect Your Home from More Than Just Damage

Bryan learned the hard way that rebuilding isn’t just about materials—it’s about meeting modern codes. And in Oklahoma, where homes face strong winds, hail, and fire risks, this coverage isn’t something to skip over.

At Oklahoma Insurance Professionals, we help homeowners across the Oklahoma City area understand what their policies do—and don’t—cover. We’re an independent insurance agency, which means we work for you, not a big corporation. If you have an older home or just want to make sure your coverage is up to date, give us a call.
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We’ll help you avoid unpleasant surprises—and maybe even save you some money along the way.

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Scott Godwin
Founder

Oklahoma Insurance Professionals LLC serves Oklahoma City and the surrounding Oklahoma communities by protecting the people we work with just like we protect our own family members. Home insurance, auto insurance, business insurance, and more. We can help you find the coverage you need. ​