Ordinance and Law Coverage in Florida: Who Pays for Code Upgrades?

When a covered loss forces you to rebuild to today’s building code, those upgrade costs are paid by ordinance and law coverage: a separate part of your policy governed by Fla. Stat. 627.7011. Under that statute, unless the insurer obtained your written rejection, a Florida policy covering the dwelling is deemed to include ordinance and law coverage at 25 percent of the dwelling limit (Coverage A), and insurers must offer a 50 percent option. “Ordinance and law” means the added cost of complying with current construction codes, not just putting back what was damaged.

In Tampa Bay, this coverage matters most on roofs. The Florida Building Code’s 25 percent rule (Florida Building Code, Existing Building, Section 706.1.1) requires an entire roof section to be brought to current code when more than 25 percent of it is repaired, replaced, or recovered in any 12-month period, unless the roof was built, repaired, or replaced in compliance with the 2007 code or a later edition. The Legislature created that exception in 2022 through Senate Bill 4-D, codified at Fla. Stat. 553.844(5). This article covers the two coverage tiers, the reroof rule before and after SB 4-D, the code line items carriers leave out of estimates, and the deadlines that control, including the one-year claim notice in Fla. Stat. 627.70132.

What Is Ordinance and Law Coverage?

Your dwelling coverage pays to repair or replace what the loss damaged. Standard Florida policies, however, exclude the increased cost of complying with any ordinance or law regulating construction. Without ordinance and law coverage, the carrier owes the cost of restoring the home as it was, even where the building department will not issue a permit for that scope of work.

Ordinance and law coverage fills that gap. Depending on the policy form, it pays to upgrade the damaged portion to current code, to demolish and remove undamaged portions when an ordinance requires tear-down, and to cover increased construction costs attributable to code changes since the home was built. The coverage is a sublimit expressed as a percentage of Coverage A: on a $400,000 dwelling limit, the 25 percent tier provides up to $100,000; the 50 percent tier, up to $200,000. It sits inside every claim we handle in our property insurance claims practice.

How Do the 25 and 50 Percent Tiers Work Under Section 627.7011?

A Florida insurer must offer replacement cost coverage in two versions: one that excludes code-compliance costs, and one that includes them at either 25 or 50 percent of the dwelling limit, as the policyholder selects. Any rejection or selection must be made on a form approved by the Office of Insurance Regulation. If the insurer never obtained that written rejection, the statute deems the policy to include ordinance and law coverage at 25 percent of the dwelling limit. Check your declarations page: the line usually reads “Ordinance or Law: 25%” or “50%.”

The statute carries one built-in limitation: the coverage “applies only to repairs of the damaged portion of the structure unless the total damage to the structure exceeds 50 percent of the replacement cost of the structure.” Carriers sometimes read that clause narrowly when a code provision (like the 25 percent roof rule) compels work on portions the storm did not touch. How far the coverage reaches turns on the specific policy language and the building official’s determination, a recurring dispute in Tampa Bay roof claims.

The 25 Percent Roof Rule: Before and After SB 4-D

The rule itself is one sentence in the Florida Building Code, Existing Building, Section 706.1.1:

“Not more than 25 percent of the total roof area or roof section of any existing building or structure shall be repaired, replaced or recovered in any 12-month period unless the entire existing roofing system or roof section is replaced to conform to requirements of this code.”

A few working definitions. A “roof section” is a distinct area of roof: a change in elevation or structure can divide one roof into several sections, each measured on its own. “Recovered” means a new covering installed over the existing one. The 12-month period is cumulative: two 15-percent repairs eight months apart cross the threshold. Work needed only to tie a repaired area into the un-repaired field does not count toward the 25 percent.

Senate Bill 4-D changed the rule’s reach in May 2022. Under Fla. Stat. 553.844(5), if the existing roof was built, repaired, or replaced in compliance with the 2007 Florida Building Code or any later edition, then only the repaired, replaced, or recovered portion must meet current code, regardless of how much of the roof is affected. The 2007 code took effect March 1, 2009, so a roof permitted on or after that date generally qualifies. The statute also bars local governments from amending the exception by ordinance.

For claims, the permit date of your roof now drives the scope. On a roof permitted before March 2009, hurricane damage across a third of the shingle field means the lawful repair is a full section replacement to current code, often the largest single number in the claim, and the reason the ordinance and law tier matters. On a post-2009 roof, carriers take the opposite position and write repair-only estimates; there, the fight usually shifts to discontinued materials and uniform appearance under Fla. Stat. 626.9744, which we cover in our guide to Florida’s insurance matching law.

Which Code Upgrades Does a Tampa Bay Reroof Actually Trigger?

When a reroof permit is pulled and the covering comes off, the Florida Building Code requires specific retrofits, the line items most often missing from carrier estimates:

• Roof-deck re-nailing. Once the roof is stripped to the sheathing, the deck must be re-nailed: 8d ring-shank nails (0.113-inch shank, minimum 2-1/4 inches long) at a maximum of 6 inches on center at panel edges and intermediate supports. Existing fasteners count toward the spacing, but on older homes supplemental nailing is almost always required.
• Secondary water barrier. Sheathing joints must be sealed, commonly with a minimum 4-inch strip of self-adhering polymer-modified bitumen tape applied directly to the deck, or with a full self-adhering underlayment.
• Current underlayment and edge-metal standards. The replacement system must meet today’s underlayment attachment and edge-metal requirements, not the standards in force when the roof went on.
• Permit and inspection fees. The permit, the in-progress inspections, and the final inspection are real costs of a code-compliant repair and belong in the estimate.

Non-roof losses trigger their own upgrades: current outlet protection and hardwired smoke alarms on electrical repairs, energy-code insulation when walls are opened, today’s wind provisions on extensive structural work. And if a flood-zone home’s repair costs approach half its market value, a separate federal framework applies: the FEMA 50 percent rule, under which the local floodplain administrator, not your insurer, decides whether the home must be brought into full flood compliance.

How Carrier Estimates Leave Code Costs Out

An adjuster’s estimate is a line-item document, and the omissions follow patterns: no ordinance and law items at all; no re-nailing or secondary water barrier lines; permit fees excluded or zeroed; or a repair scoped at 20-something percent of the roof section, just under the threshold that forces full replacement on a pre-2009 roof. None of this is hidden. It is visible to anyone who reads the estimate line by line against what the building department will actually permit.

That reading is the core of how we work. I am a Florida attorney with a family history in construction for generations, and I review carrier estimates the way a contractor reads a scope, then check the carrier’s figures against real bids from licensed local contractors. When the carrier’s number assumes a patch the building official will not approve, the claim is underpaid as a matter of arithmetic. See how we approach underpaid property insurance claims and roof damage claims in Tampa Bay.

When Does the Carrier Have to Pay Ordinance and Law Benefits?

The claim runs on the statutory clock in Fla. Stat. 627.70131: the insurer must acknowledge it within 7 days, begin its investigation within 7 days of receiving your proof of loss, inspect the property within 30 days if a physical inspection is warranted, and pay or deny within 60 days. Check where your claim stands against each mark with our insurer response timeline checker.

Ordinance and law benefits usually run behind the base payment. Most policy forms pay increased construction costs only as they are actually incurred: after the permit is pulled and the upgrade work is performed. The practical sequence: permit, work, itemized invoices, prompt submission. Because these costs surface late, they frequently travel as a supplemental claim, and Fla. Stat. 627.70132 gives you 18 months from the date of loss to notice one. The initial claim must be noticed within 1 year of the date of loss, and any lawsuit on the policy filed within 5 years under Fla. Stat. 95.11(2)(e). Run your dates through our insurance claim deadline calculator, or see our guide to Florida’s hurricane claim filing deadlines.

What If the Insurer Refuses to Pay for Code Upgrades?

Build the record. Get the building department’s requirement in writing: permit conditions, plan-review comments, or an inspector’s correction notice. Have your contractor break out the code-driven items with unit pricing. Then demand the carrier’s ordinance and law position in writing, line by line. Code compliance is decided by the building official through the permit and inspection process, not by the adjuster’s software settings. Where the carrier disputes what the structure needs, we retain independent licensed engineers to answer with their own inspection and report. If the dispute does not resolve, Florida law requires a pre-suit notice of intent to litigate under Fla. Stat. 627.70152 before a lawsuit is filed, and if the claim was denied outright, start with our page on denied property insurance claims.

Fee arrangements depend on the matter, and some ordinance-and-law disputes may be accepted on contingency. Under a contingency agreement, no recovery means no attorney’s fee, case costs, or expenses are owed. In litigation, a proposal for settlement under Fla. Stat. 768.79 can create fee consequences when the statutory conditions are met.

When the Problem Is the Contractor, Not the Carrier

Some code problems are not insurance problems. If your roof leaks because it was installed wrong (missing fasteners, skipped underlayment, work done without a permit) and no storm caused the damage, the claim runs against the roofer or builder, not your insurer, under different deadlines and its own mandatory pre-suit notice process. Start with our construction defects overview or the page on roofing defect claims.

Why Cory Cannon for Code-Upgrade Disputes

We handle ordinance and law disputes as part of every Tampa property damage matter we take, and some of those matters may be accepted on contingency. If your estimate has no code items and your roof predates 2009, or the carrier is refusing the upgrades your permit requires, request a free consultation and send us the estimate. We will tell you what is missing from it.

Frequently Asked Questions

Do I already have ordinance and law coverage on my Florida policy?

Probably. Under Fla. Stat. 627.7011(1), unless the insurer obtained your written rejection on an approved form, a policy covering the dwelling is deemed to include ordinance and law coverage at 25 percent of the dwelling limit. Check your declarations page for a line reading "Ordinance or Law: 25%" or "50%." If the declarations show no coverage and you never signed a rejection form, the statutory default may still matter: keep both documents and raise the question early in the claim.

Should I carry 25 percent or 50 percent ordinance and law coverage on an older home?

On homes with roofs permitted before March 1, 2009, a roof claim can trigger a full roof-section replacement under the Florida Building Code's 25 percent rule, plus deck re-nailing and a secondary water barrier. Against a modest dwelling limit, the 25 percent tier can be consumed quickly. The 50 percent option under Fla. Stat. 627.7011(1) costs more in premium but doubles the sublimit. It is a decision to make before a loss; after the date of loss, your tier is fixed.

Will the insurance company advance code-upgrade money before the work is done?

Usually not. Most ordinance and law provisions pay increased construction costs only as they are actually incurred, after the permit is pulled and the upgrade work is performed. Keep the permit, inspection records, and itemized contractor invoices, and submit them promptly. Watch the clock: Fla. Stat. 627.70132 gives you 18 months from the date of loss to notice a supplemental claim, and code costs often surface as exactly that.

Does the 25 percent roof rule still force a full roof replacement?

It depends on the roof's permit date. If the roof was built, repaired, or replaced in compliance with the 2007 Florida Building Code or a later edition (generally, permitted on or after March 1, 2009), Fla. Stat. 553.844(5) requires only the repaired portion to meet current code, no matter how much is damaged. Roofs predating the 2007 code remain under the original rule: more than 25 percent repaired, replaced, or recovered in any 12-month period means the entire roof section must be brought to current code.

Who decides whether my repair must meet current code: the adjuster or the building department?

The local building official. Code compliance is enforced through your city or county's permit and inspection process, not by the insurance adjuster or the carrier's estimating software. If the building department requires re-nailing, a secondary water barrier, or a full section replacement, that determination (documented in permit conditions or an inspector's correction notice) is the evidence that triggers ordinance and law coverage. Get it in writing before you argue scope with the carrier.

Does ordinance and law coverage apply to flood damage?

No. Flood losses are excluded from standard homeowner's policies and are handled under separate flood policies, which carry their own code-related benefit called Increased Cost of Compliance. If a flood-zone home is substantially damaged, the FEMA 50 percent rule (administered by the local floodplain official) can require elevation or other mitigation. That is a different framework from Fla. Stat. 627.7011, with its own limits and its own paperwork.

What code items are most often missing from a roof estimate?

The recurring omissions: roof-deck re-nailing to the 8d ring-shank, 6-inch-spacing standard; the secondary water barrier over sheathing joints; current underlayment and edge-metal requirements; permit and inspection fees; and (on roofs permitted before March 2009) the full section replacement the 25 percent rule requires instead of the patch the estimate prices. Compare the carrier's line items against a licensed local roofer's written scope before accepting the payment as final.