The adjuster agrees the storm damage is covered. Then the permit office says the repairs must meet today's code, and the estimate grows by thousands nobody budgeted for.
That gap is what ordinance or law coverage is for. For the whole policy, see our complete Texas home insurance guide.
What does ordinance or law coverage pay for?
The short answer: It pays the extra cost of rebuilding or repairing your home to meet current building codes and local ordinances after a covered loss, on top of what it would cost to put things back the way they were.
The state's Office of Public Insurance Counsel (OPIC) defines it on its residential property insurance page: increased cost of construction coverage, "also called law or ordinance coverage," pays "the extra cost to rebuild your home to meet updated building codes or ordinances."
Wording varies by policy. As one Texas example, the edition of TWIA's endorsement TWIA-431 posted on TWIA's forms page (effective April 1, 2008) covers the increased cost from an ordinance or law to:
- Repair the damaged part of the building to code.
- Tear down and rebuild the undamaged part, but only when the whole building must be demolished because of damage to another part.
- Remove or replace undamaged parts needed to finish the repair.
- Haul away the extra debris that code work creates.
- Meet the windstorm code so the home stays insurable with TWIA.
The form excludes loss in value, windstorm inspection fees and pollutant cleanup such as asbestos. It pays only once the home is actually repaired or rebuilt at the same premises, with repairs done no later than two years after the loss.
Why doesn't a regular policy just pay for code upgrades?
The short answer: A homeowners policy is built to restore what you had, so it may limit or leave out the extra cost of meeting newer codes unless you add or raise this coverage.
TDI's home insurance guide (updated June 1, 2026) says most companies offer endorsements, or policy add-ons, and lists "extra construction or repair costs to meet local building codes" among common ones. It lists "extra construction costs if your policy doesn't pay enough to rebuild your home" separately.
Those differ: extended replacement cost helps when rebuilding costs more than your dwelling limit; ordinance or law helps when the law requires something better than what you had. Our guide to what your Texas homeowners policy doesn't cover lists other common gaps.
TWIA's ICC flier (June 2024) is blunt: "TWIA does not pay for updates required for building code changes unless the ICC endorsement is purchased." Here ICC means Increased Cost of Construction, not flood's ICC.
How much ordinance or law coverage can you buy in Texas?
The short answer: It's often sold as a percentage of your dwelling limit, such as 10% or 25%, but the amounts on offer depend on the insurer and policy form, and your declarations page shows what you have.
$5,000, then more by choice
From April 1, 2001, a TDI bulletin added $5,000 of building law coverage at no extra premium to TDI's standard homeowners forms, with optional 10%, 15% or 25% of the dwelling limit. TDI's 2018 homeowners report says insurers began filing their own forms in 2003, though some still use the standard ones.
5% to 25%, optional
TWIA's flier says coverage is offered at 5, 10, 15 or 25 percent of the Coverage A (building) limit. Its claims page (August 8, 2024) says it isn't automatic and adding it increases your premium.
Read the declarations
Look for ordinance or law, building ordinance, or increased cost of construction, with a percentage or dollar amount.
On both the 2001 standard forms and TWIA-431, the coverage is additional insurance that doesn't reduce your dwelling limit.
Why does this coverage matter more in Texas right now?
The short answer: TDI's windstorm program switched to the 2024 international codes on April 1, 2026, and some cities, including Dickinson, have adopted them too.
TDI's adopted codes page (updated April 23, 2026) says that starting April 1, 2026, windstorm certificate applications must be certified under the 2024 International Residential Code or the 2024 International Building Code. That matters for coastal homes, because TWIA coverage generally depends on a WPI-8 windstorm certificate for the work.
One change touches roofs right away. A TDI bulletin (April 7, 2026) says that when a new roof covering is installed in the catastrophe area, every section counts as a high wind area, and asphalt shingle and modified bitumen roofs need one of three underlayment methods from the 2024 code. So a storm re-roof today may need more than the old roof had.
The City of Dickinson's permits page (viewed November 11, 2026) says it adopted the 2024 international codes, including the building and residential codes, and the 2023 National Electrical Code, with amendments, effective October 13, 2026.
Older roof? See our guide to insuring an older roof in Texas.
How can the 50% rule turn a repair into a rebuild?
The short answer: In a mapped floodplain, if repairs cost 50% or more of the building's pre-damage market value, local rules can require the home to meet current floodplain standards, often meaning elevation, whatever caused the damage.
The Texas Water Development Board's substantial damage quick guide (February 2026) says a building is substantially damaged when repairs "will equal or exceed 50 percent of the market value of the structure," land excluded, and then it "must be brought into compliance with current local floodplain management regulations." The guide covers mapped high-risk flood zones and says assessments come before repairs "no matter the cause of damage (tornado, fire, flood, etc.)."
Galveston spells out the local version. The city's flood protection page says substantially damaged or improved buildings, "regardless of the cause of damage," need permits and elevation certificates and are "held to the same standards as new construction." New construction and substantial improvements must be built to at least the city's minimum design elevation, 18 inches above base flood elevation. Dickinson's new home checklist also sets finished floors in the floodplain at least 18 inches above base flood elevation.
This is general information, not legal advice; your city's floodplain administrator makes the call.
How is ordinance or law different from NFIP's Increased Cost of Compliance?
The short answer: NFIP's Increased Cost of Compliance pays up to $30,000 toward elevating or otherwise mitigating a building only after flood damage leads to a substantial or repetitive damage finding, while ordinance or law on a home or wind policy responds to losses that policy covers, such as fire or wind.
| Ordinance or law (home or TWIA policy) | NFIP Increased Cost of Compliance | |
|---|---|---|
| What triggers it | A loss the policy covers, such as fire on a home policy or wind on TWIA, plus a code that applies to the repair | Flood damage, with the community declaring the building substantially or repeatedly damaged by flood |
| How much | Your chosen limit, often a percentage of the dwelling limit | Up to $30,000 |
| What it pays for | Code costs on the repair, plus items your form lists, such as demolition or debris | Elevation, relocation, demolition, or floodproofing (for non-residential buildings) |
| Included? | Varies; on TWIA, only with the endorsement | Part of the NFIP standard flood policy |
Sources: FEMA's ICC summary and agent guidance, viewed November 11, 2026. FEMA counts a building as repetitively damaged after flood damage on at least two occasions within 10 years, with average repair costs of at least 25% of market value each time. Its agent guidance also lists qualifications, including a building in a high-risk flood zone and not having reached the NFIP's $250,000 claim maximum.
Standard homeowners policies exclude flood, so their ordinance or law coverage generally won't help with a flood loss. See our flood vs. wind damage guide and our Texas flood insurance guide.
What should Galveston and Dickinson homeowners watch for?
The short answer: Both cities sit in TWIA's territory with floodplain rules and older homes, so check ordinance or law on your home and wind policies.
TWIA's overview (updated May 27, 2026) says its coverage area is the entire first tier, which includes all of Galveston County, and requires a windstorm certificate for structures built or altered on or after January 1, 1988. So a storm repair there often has to meet both the windstorm code and city rules.
- Galveston. Per its historic preservation page, the Landmark Commission reviews new construction, rehabilitation and demolition in districts like the East End and Silk Stocking. More on our Galveston insurance page.
- Dickinson. The city's comprehensive plan lists aging housing stock and floodplain flood risk among its challenges, and the National Weather Service reported major flooding along Dickinson Bayou during Harvey in 2017. A big repair may now face the 2024 codes. See our Dickinson insurance page.
What should you ask at your next renewal?
The short answer: Ask whether you have ordinance or law coverage, how much, what it pays for, when it pays, and whether your wind and flood policies carry their own version.
- Do I have it, and how much? Turn any percentage into dollars using your dwelling limit.
- What does it cover? Ask about demolishing undamaged parts, debris removal and design fees.
- When does it pay? Some forms pay only after you rebuild at the same address, within a time limit.
- Is my dwelling limit at rebuild cost? A low limit shrinks a percentage.
- On TWIA, is the endorsement on my declarations? TWIA's claims page says it shows as Increased Cost of Construction with a percentage. Ask how TWIA's claim and repair deadlines (see the FAQ) apply to you.
- Do I carry NFIP building coverage? That's what brings ICC. With private flood, ask what's included.
- Is my house older, historic or below today's flood elevation? Price a higher percentage, plus extended replacement cost.
Our public carrier lineup is Geico, Progressive, Liberty Mutual and Safeco, plus TWIA or private wind and NFIP or private flood. We re-confirm which carriers can write your policy before every quote; we are not appointed with every carrier in Texas. When we re-shop coverage, clients save on average about $500 a year, though results vary. Start on our quote page or see home insurance.
The bottom line
Ordinance or law coverage pays the difference between putting your home back and putting it back to code. With the windstorm program on the 2024 codes and the 50% rule in mapped floodplains, that difference can be big, especially for older homes. After a flood, NFIP's Increased Cost of Compliance, up to $30,000, can help when the building is found substantially or repetitively damaged.
Send us your declarations pages and we'll show you what you have. Call (832) 703-1289.
Last reviewed by the Watson Insurance team on November 11, 2026. Coverage details are from TDI, OPIC and TWIA pages, reports and forms; code dates are from TDI and the City of Dickinson; floodplain rules are from the Texas Water Development Board and the City of Galveston; ICC details are from FEMA, all viewed November 11, 2026. Educational only, not personalized insurance advice.
