Living in a vintage home has its advantages, such as structural stability and one-of-a-kind aesthetics. However, older homes – even those built only 10 years ago or more – may not be up to their jurisdiction’s most current building codes. This is where ordinance or law coverage comes in handy. Muller Insurance is a family-owned business, with a long history of helping homeowners in New Jersey, New York, Connecticut, and other states choose the optimal home insurance for more than 100 years. Here, we’ll discuss how evolving construction codes may affect home replacement costs and how to keep up with these changes.

What Is Ordinance or Law Coverage?

Codes continually evolve with the advent of new technology to withstand the damaging effects of severe natural disasters. Ordinance or law coverage is a supplement that can be added to a homeowner’s insurance policy. It covers the cost to not only replace buildings damaged by an insured peril but also reconstruct them to jurisdictional code standards. This insurance add-on can mitigate accrued replacement costs necessary to rebuild up to local and state regulations.

Protect Yourself with Home Insurance Replacement Cost Add-ons

Floods, fires, and storms are increasing in severity and regularity across the United States. Building and home codes are amended to reduce the aftermath of severe weather, as well as keep up with technological advances that increase building stability and safety.

Overall, advanced building standards protect residents and communities. It’s important to have a homeowner’s insurance supplement, or law and ordinance coverage, that can help to pay for home replacements up to code. Otherwise, you may be stuck with a much higher bill than anticipated. For example, replacement costs can accrue after the following events:


When an older home is fully or partially destroyed by a flood, newly amended building codes may require the home to be entirely rebuilt. The foundation may have to be constructed using materials that are more flood-proof (and costly) than the originals. The codes could also call for the home’s foundation to be laid at a higher elevation. Regular homeowner’s insurance will typically only put forward the money needed to restore the structure to its original state; the cost to rebuild at a higher elevation, with more advanced materials, will have to be paid by the owner.


If a home suffers fire damage that exceeds 50 percent of the structure, according to most local codes, the home will need to be demolished and rebuilt. Standard homeowner’s insurance won’t cover the cost to demolish the building and take away the debris, which can be rather costly. These expenses will fall to the underinsured homeowner.

Building codes run the full spectrum of the edifice, from heating and air-conditioning to electricity and plumbing systems. Over time, codes may also require increased space between the home and the sidewalk and other municipal structures. Muller Insurance can help you understand where homeowner’s insurance coverage gaps exist, so you can obtain proper protection and avoid being taken by surprise when replacement costs mount.

Why Building Codes Are Important

It may seem as though modified building codes are more hassle than they are worth. Across the U.S., only about 45% of all cities, towns, and counties have brought building codes up to modern standards. However, code promulgation and enforcement are beneficial to communities and local governments, including in the following ways:

Code Enforcement Saves Money

Properly enforced codes help families, businesses, and communities save money and infrastructure. The U.S. Federal Emergency Management Agency (FEMA) estimates that about $32 billion was saved over the past 20 years by bringing buildings up to code. These amendments include preventative measures against earthquakes, hurricane winds, and floods.

Codes Save Lives

Over the centuries, buildings made with highly flammable materials, or designed in ways that enabled flames, have resulted in the unnecessary deaths of countless thousands. These tragedies were the impetus for creating building codes and construction standards that help prevent the passing of many lives.

Sustainable Communities

When storms or fires ravage a community, homes and infrastructure must be rebuilt. Having buildings that adhere to modern codes can greatly reduce the amount of private and public destruction. This assists with keeping insurance premiums low and lessening the need for local governments to pay for rebuilding.

Know How Much Your Home Costs to Replace

Muller Insurance provides homeowners law and ordinance insurance in New Jersey, New York, Connecticut, and several other states. As an independent insurance agency, we can customize your plan from a variety of insurance companies. Not only can we design a comprehensive homeowner’s insurance that includes a cost of replacement supplement, but we can also bundle your home insurance with auto, life, or business insurance to fit your needs. Let Muller Insurance review your current homeowner’s insurance policy to ensure your coverage is complete – contact us today to get a quote.

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