Ordinance and Law Gap Calculator

Code upgrades driven by current ordinances are often excluded from standard policies. This calculator sizes the gap.

Current code rebuild

As-was rebuild

Demolition/debris

Undamaged value loss

Ordinance & law limit

Uncovered gap

$405,000

Total O&L exposure

$555,000

Code upgrade cost

$350,000

How the math works

Code upgrade = current − as-was. Total O&L = code + demo + undamaged loss. Gap = total − limit.

Older buildings need ordinance coverage at 15-25% of the property RCV limit — not the stock $25k. The endorsement is measured in hundreds of dollars per year; skipping it on a 40-year-old MF routinely turns a covered loss into a seven-figure owner write-down.

How to Use

Enter total rebuild cost at current code.
Enter as-was rebuild cost.
Enter demolition and debris removal cost.
Enter loss of value of undamaged portion.
Enter ordinance & law coverage limits (A/B/C).
Read uncovered gap.

Frequently Asked Questions

Coverage A/B/C?

Coverage A: loss of undamaged portion forced to demo (e.g., partial fire demo requires full building demo per code). Coverage B: demolition and debris removal. Coverage C: increased cost of construction to meet current code. Each needs its own limit.

Common gap?

Many policies exclude or sub-limit ordinance coverage at $25-100k — cosmetic for a 50-year-old commercial or multifamily asset. Code-driven rebuild on a 1965 MF can add 15-35% over matching-like-kind.

How to size?

Walk the building with a code consultant. Identify grandfathered conditions (plumbing, electrical, ADA, egress, fire suppression, structural, seismic). Request rebuild estimate at current code; compare to as-was RCV. Gap is the C limit.