Code Upgrade Coverage in Practice

How to actually claim O&L. 25% roof rule (current state). Code-required vs you-want. Building dept letter as killer doc.

What you'll learn

How to actually claim Ordinance and Law (O&L) coverage on a real loss. The 25% rule current state. What's "code-required" vs "you-want." Building department letter as the killer document.

This module is the practical execution of what you learned in Module 2.6 — Ordinance and Law.

5.6.1 Reminder of the rule

Most Florida homeowner policies include Ordinance and Law (O&L) coverage:

Pays the additional cost of repairs/rebuilding required by current building codes
Expressed as % of Coverage A (10%, 25%, 50%)
Covers code-required upgrades during repair, beyond what the original construction had

Without O&L, you pay original-build cost. Code upgrades come out of pocket. With O&L, carrier pays code upgrades, up to the O&L limit.

5.6.2 Identifying code-required upgrades — by trade

Walk through each trade involved in your repair. Identify what current code requires that wasn't in the original construction.

Roofing

Common code-required upgrades during roof replacement:

Higher-rated underlayment (peel-and-stick / synthetic in many FL counties)
Improved nailing pattern + nail count (FL Building Code now requires 6 nails per shingle in many areas)
Drip edge + ice/water shield in valleys
Hurricane straps / ties at gable ends (older homes often lack)
Sheathing nailing pattern (8d ring-shank @ specific spacing)
Vent boots / pipe flashings to current standards
Roof secondary water barrier in some HVHZ zones

Plumbing

After water damage repairs:

Shutoff valves required at every fixture in modern code (older homes often lack)
PEX or CPVC replacing old galvanized or polybutylene
Drain venting improvements
Backflow preventers in some applications
Water heater strap/expansion tank requirements

Electrical

After electrical damage:

AFCI breakers required in bedrooms (older homes likely lack)
GFCI outlets in all kitchens, baths, garages, exteriors (older homes likely lack)
Tamper-resistant outlets (post-2008)
Dedicated circuits for kitchen appliances + bathrooms
Smoke + CO detectors hardwired and interconnected
Service upgrades (e.g., 100A → 200A) may be required for major repair triggering panel work

Structural / framing

After wind damage or structural repairs:

Hurricane straps + ties at every roof-to-wall connection
Improved fastener schedules (FBC has tightened over the years)
Wind-rated openings (impact-rated windows / storm shutters)
Improved connectors at floor-to-wall, wall-to-wall

HVAC

After fire/smoke damage or major water:

Updated ductwork to current insulation standards
AC condenser pad anchoring in HVHZ
Smoke detectors interconnected w/ HVAC shutoff (some applications)

5.6.3 The 25% roof rule — current state

The Florida Building Code historically had a 25% rule: if more than 25% of the roof was damaged in a single event, the entire roof had to be replaced to current code.

Current status (as of 2025): the 25% rule has been modified by recent reforms:

Generally: roofs 10+ years old can be repaired (rather than fully replaced) when more than 25% is damaged, if the existing roof was built to a code in effect at any time after 2007
Distinct rules apply to roofs older than that
The reforms aim to prevent homeowners from triggering full code-compliant roof replacement on minor damage to old roofs

Practical impact: the 25% rule still applies in some circumstances, but with significant carve-outs. Don't assume it applies to your roof without verification.

For your claim:

Confirm with your building department what the rule is for your specific roof age + repair scope
If the rule applies → claim full code-compliant replacement under O&L
If the rule has been narrowed for your situation → still claim all individual code-required upgrades for the work being done

5.6.4 What's "code-required" vs "you-want"

O&L pays for upgrades the code requires. Not for upgrades you'd like.

Code-required (covered)	You-want (NOT covered under O&L)
GFCI outlets where code now requires them	Dimmer switches you'd like to add
Hurricane straps where current code requires them	Granite countertops vs. laminate (style upgrade)
Peel-and-stick underlayment	Different shingle color you'd prefer
AFCI breakers in bedrooms	A larger refrigerator
Higher impact-rated windows where required	Bay window when original was double-hung

Litmus test: would the building inspector reject the work if you DON'T do this upgrade? If yes → code-required, O&L covers it. If no → you-want, on your dime.

5.6.5 The killer document — building department letter

When O&L is disputed, the single most powerful piece of evidence is a letter on building department letterhead confirming that the upgrade is code-required for your specific repair.

How to get one

Visit your local building department in person (best)
Bring: address, photos of damage, scope of repair, list of upgrades you're claiming
Ask: "Can you confirm in writing which of these upgrades are code-required for the work being done?"
Some departments charge a small fee ($25–$100) for a written response
Worth every penny on contested claims

What to ask in the letter

"Per Florida Building Code [edition] and [city/county] amendments, the following upgrades are required for [scope of work] at [address]: [list]"
Date + signature of building official
Specific code section citations

This letter ends most O&L disputes immediately.

5.6.6 The supplement — how to claim O&L

In your supplement / rebuttal:

ORDINANCE AND LAW SUPPLEMENT

Pursuant to the Ordinance and Law coverage in Section [#] of the
policy, the following code-required upgrades are claimed as part
of the repair of the [date of loss] loss:

1. [Code-required upgrade] — [Florida Building Code section] —
   $[cost]
   - Required for: [trade/scope]
   - Original construction: [what was there]
   - Code requires: [what code now requires]

2. [Next item] ...

Total Ordinance and Law claim: $[total]

Supporting documentation:
- Building department letter confirming code requirements [Exhibit A]
- Contractor quote itemizing each code upgrade [Exhibit B]
- Florida Building Code reference for each item [Exhibit C]

Submit as a separate document attached to your main supplement / rebuttal. Carrier handles O&L on a separate accounting line.

5.6.7 O&L sub-limit math

O&L is capped as a % of Coverage A.

Coverage A	10% O&L	25% O&L	50% O&L
$300,000	$30,000	$75,000	$150,000
$500,000	$50,000	$125,000	$250,000
$750,000	$75,000	$187,500	$375,000

For most FL claims, 25% is the right level. Older homes (pre-2002) often need 50%+.

Action: check your dec page. If O&L is at 10%, talk to your agent about raising at next renewal. Cost is usually minimal.

5.6.8 Common O&L disputes + counters

Carrier says	You respond
"That's not code-required, it's preference"	Building department letter
"Pre-existing code violations aren't covered"	Most policies cover code-compliant repair of damaged areas regardless of pre-existing status. Verify your policy.
"Code didn't require that until [date]"	Code in effect at time of repair governs, not at original construction
"We've already paid Coverage A; no separate O&L bucket"	O&L is a separate sub-limit under most policies. Verify dec page.
"Your O&L sub-limit is exhausted"	Verify the math. Push back if calculation is wrong.

5.6.9 Action steps

After scope (Module 5.1) and pricing (Module 5.2): walk through with contractor → list every code-required upgrade
Get building department letter confirming the upgrades
Build the O&L supplement (5.6.6 template)
Submit as separate document with main supplement
Confirm at next renewal: O&L at 25%+

Chapter 5 complete. Next chapter: 6.1 Decoding the Carrier's Estimate.

Educational. Not legal advice. Florida Building Code and the 25% roof rule have been amended materially by recent reforms. Specific code requirements vary by jurisdiction. Verify with your local building department + current Florida Statutes before relying on any specific code-upgrade claim.