Starting the Rebuild Over Budget - and What Helped Change That

Rebuilding after a tornado has already taught me that nothing about this process is simple. I walked into this project with a hopeful budget — ideally sticking close to the full insurance payout — but that dream didn’t survive long. The original house was built in 1973, and unfortunately, decades-old mysteries quickly surfaced.

One of the biggest? The septic system.

I knew my dad had once drawn up a detailed map of the entire property showing exactly where the septic was located — a map that was likely swept away in the tornado. Even the courthouse records only listed the basics. No specifics. No documentation. No capacity information. Nothing that would help us know whether the existing tank met today’s code.

The $10,000 Surprise

Once we realized there was no way to definitely know the current system was sized appropriately for a new build — and no guarantee it met current code requirements...

👉 We needed a completely new septic system.

And just like that, before the foundation was even poured, we were already $10,000 over budget.

It wasn’t the way I pictured starting this rebuild.

Learning About Ordinance or Law Coverage

But this unexpected detour ended up teaching me something incredibly valuable — something most homeowners don’t even realize exists.

Many insurance policies include a clause called Ordinance or Law Coverage. This protects you when damaged property must be replaced or upgraded to meet current building codes.

When I checked our policy, sure enough — we had it.

Here’s what I learned:

✦ What Is Ordinance or Law Coverage?

This coverage helps pay for the increased cost of repairing or replacing parts of your home to bring them up to current code, even if the original system was grandfathered in decades ago.

✦ What It Covers

• Required upgrades during a rebuild

• Replacement of outdated systems

• Code-required changes (like septic size, electrical, plumbing, etc.)

  
  

✦ What It Doesn’t Guarantee

• Coverage isn’t always included — sometimes it must be purchased as an endorsement

• Coverage limits vary

• It won’t cover the entire cost if the upgrade is large

✦ Our Policy Coverage

We found out our policy includes $5,000 in ordinance or law coverage — and that check arrives next week. It doesn’t erase the full cost, but it absolutely helps.

And the best part?👉 Our new septic system is DONE. On with the build!

A Hopeful Step Forward

Even though starting off $10,000 over budget stings, I’m grateful to have learned about this coverage now — not later. Rebuilding is already an emotional rollercoaster, and knowing we recovered at least part of the cost gives me a small win in a big process.

If you’re rebuilding, renovating, or even doing routine maintenance on an older home, I highly recommend checking your policy for this hidden protection. It might save you thousands — and some stress.