What Is Ordinance or Law Coverage on a Roof Claim in North Dakota?
Ordinance or law coverage is the part of a homeowners policy that pays for code required upgrades when a hail or wind claim triggers a roof replacement, such as ice and water shield at the eaves, drip edge, and replacing rotted or spaced decking. Without it, the insurer only pays to put back what was there, and the homeowner covers the difference. Dodd Roofing and Exteriors sees this on Fargo and Moorhead claims every fall, and the coverage is often already on the policy but never used because nobody asked.
What does ordinance or law coverage actually pay for?
It pays for work the building department requires when the roof is replaced, even if the old roof did not have it. In Fargo and West Fargo that usually means an ice barrier from the eave to at least 24 inches inside the exterior wall line, metal drip edge, and solid decking where old skip sheathing or rotted boards turn up. Standard policies typically include 10 percent of the dwelling coverage, and many carriers let you raise that to 25 or 50 percent. Our posts on
and
cover the two most common code items.
Why do Fargo and Moorhead roofs trigger code upgrades so often?
Much of the housing in north Fargo, south Moorhead, and older West Fargo was built before ice barrier rules existed, and some still has spaced boards from an original cedar shake roof. Hail claims here are usually full replacements, a full replacement needs a permit, and a permit means the roof must meet current code. Moorhead follows the Minnesota state building code, which has its own ice barrier rule.
How do you know if your policy has it?
Check your declarations page for a line that says Ordinance or Law, Building Code Upgrade, or Code Coverage with a percentage next to it. Some roof endorsements that switch the roof to actual cash value also limit this coverage. Our
explains those endorsements.
How does the claim actually get paid?
The adjuster's first estimate almost never includes code items, because the adjuster scopes what was on the roof, not what the city requires. The contractor documents the requirement with the permit, the code citation, and tear off photos, then submits a supplement. Ordinance or law money is usually paid as incurred, after the work is done and invoiced, so the code items need their own lines on the final invoice.
What happens if you do not have it?
The code items become an out of pocket cost on top of your deductible, since a contractor cannot skip the ice barrier or leave rotted decking and still pass inspection. Ask your agent to add the coverage before next hail season, and
is available for anything the claim does not cover.
When should Fargo homeowners sort this out?
Now. Any hail claim still open from the summer storms should be finished before the ground freezes. Bring your declarations page to the inspection and we will tell you what the city requires and what your policy should pay. Call Dodd Roofing and Exteriors at (701) 831-0710 for a free inspection in Fargo, West Fargo, Moorhead, or Horace.
Comments