You Rebuild. The City Says “Upgrade.” Who Pays?
Imagine this: a kitchen fire causes major damage, and your homeowners insurance policy covers the cost to rebuild. But when the contractor gets started, you find out your electrical system and insulation no longer meet current building codes. Suddenly, you’re on the hook for thousands in required upgrades—not just the original damage.
Ordinance or Law Coverage is the often-overlooked endorsement that helps cover these surprise expenses. Without it, many homeowners are shocked to find out their policy only pays to replace what they had—not to bring their home up to code.
What Is Ordinance or Law Coverage?
Ordinance or Law Coverage is an enhancement you can add to your homeowners insurance policy. It helps pay for the cost of repairing, replacing, or upgrading parts of your home to comply with current building codes after a covered loss. This may include:
- Demolition and removal of undamaged parts of the home (if required by code)
- Reconstruction to meet new codes, not just the original specifications
- Mandatory upgrades to systems like plumbing, HVAC, electrical, or structural components
In high-code cities like Boulder and Denver, where energy efficiency, fire safety, and accessibility standards are frequently updated, this endorsement is especially important.
Why It Matters in Colorado
Colorado’s Front Range communities have some of the strictest and fastest-evolving building codes in the region. In places like Boulder, homes often must meet elevated standards around solar readiness, ventilation, insulation, and wildfire resistance—even during partial rebuilds. Denver, too, has adopted aggressive energy-efficiency and safety codes in recent years.
That means even a moderate covered loss—like hail damage or a kitchen fire—could trigger major upgrade requirements during the repair process. Ordinance or Law Coverage ensures your homeowners insurance policy helps with those required upgrades, not just the original damage.
Real-Life Scenario
A windstorm damages your roof in Broomfield. Your standard policy approves a roof replacement—but your municipality now requires full deck replacement and higher-grade underlayment to meet 2024 codes. Your base policy might not cover the difference.
With Ordinance or Law Coverage, you’re protected for those required upgrades, not just the direct damage.
How Much Coverage Do You Need?
Most standard home insurance policies include a small amount (usually 10%) of your dwelling coverage for ordinance and law. But that may not be enough—especially if your home is 20+ years old or has undergone multiple renovations.
You can typically increase this limit to 25%, 50%, or even 100% for a modest cost—and in a high-code area like Boulder or Denver, that upgrade is often well worth it.
Who Should Consider This Endorsement?
✅ Homeowners with older or custom homes
✅ Properties in code-heavy cities (Boulder, Denver, Louisville, Superior)
✅ Owners with unfinished basements, additions, or past DIY work
✅ Anyone concerned about rising construction costs and city regulations
At Conexus, we believe in doing what’s right—and that includes making sure you’re covered not just for what your home was, but what it needs to be going forward.
Don’t Rebuild with Regret
It’s easy to assume insurance will “cover it all.” But when city code changes require you to upgrade, the gap between your current home and what’s now legally required can cost you thousands—unless you have the right coverage in place.
Ordinance or Law Coverage helps protect your budget, your rebuild, and your peace of mind.
Ready for a Coverage Check-Up?
Not sure if your homeowners insurance includes Ordinance or Law Coverage—or how much you need in Boulder, Denver, or your community?
Let’s review it together. Contact your Conexus advisor for a quick coverage check-up. We’re here to help you make informed, confident decisions about your coverage.
Protect what you’ve built. Prepare for what’s next.
This article is for general informational purposes only and is not intended to provide individualized insurance advice. Coverage availability, limits, and pricing vary by carrier and state. Please consult your policy documents or speak with a licensed insurance advisor at Conexus Insurance Partners for details specific to your situation.