If your roof is replaced after a storm, the building code may require things the old roof never had. Whether your insurance pays for those code upgrades depends on your policy and on Minnesota law. This post covers what the statute says and what we do with it.
Because this is the most legal post we write, here is the caution up front. We're public adjusters, not attorneys. This is how the statute reads and how we use it; for legal advice talk to a Minnesota attorney, especially if a carrier has refused code items and you are considering a court case.
What a code upgrade is on a roof
A code upgrade, sometimes called ordinance and law, is work required by the building code when you repair or replace. On a roof, the usual items are:
- Ice and water barrier. A sticky membrane along the eaves and in valleys, which Minnesota winters make a real requirement.
- Decking. Replacing or adding sheathing when the old boards cannot meet current requirements or fastening.
- Ventilation. Adding or adjusting vents so the attic meets code.
- Drip edge. Metal edging at the eaves and rakes.
Say your old roof had none of these. The carrier writes a $20,000 estimate for shingles and labor, and the contractor says the permit will require another $3,500 in code items. That is not a made-up add-on. If it is required, it is a cost of doing the job properly.
What Statute 65A.10 says
The official text is at revisor.mn.gov. Subdivision 1 says: "where an insurer offers replacement cost insurance: (i) the insurance must cover the cost of replacing, rebuilding, or repairing any loss or damaged property in accordance with the minimum code as required by state or local authorities;"
In plain words, if your policy is a replacement cost policy, the coverage is supposed to include the cost of repair "in accordance with the minimum code." We covered replacement cost and what the carrier holds back in our post on recoverable depreciation.
The statute does not say a word about exclusions. That is where the court decision comes in.
The 2025 Campbell decision
In Great Northwest Insurance Co. v. Campbell (Minn. July 30, 2025), the court held that a replacement cost carrier had to pay for code-required sheathing even though the policy had an exclusion that would otherwise have kept it out. In other words, the statute controlled over the contrary language.
Two limits matter. Campbell was about sheathing. It did not extend to overhead and profit, the general contractor's markup that is usually owed when a job needs coordination of several trades. A carrier can read the case narrowly, and we expect many will.
We read it carefully and do not oversell it. It helps a replacement cost homeowner whose carrier is pointing at an exclusion. It does not decide every code dispute, and an attorney is the right person to say how it applies to a specific policy.
How we document code requirements
Carriers rarely pay for what is asserted. They pay for what is shown. Here is what we gather:
- The building official. We call or email the city or county building department and ask what they require for a re-roof permit. We save the answer.
- The contractor. We ask the roofer to list each code item, the reason it is required, and the price.
- The Minnesota Rules. We identify the applicable Minnesota Rules chapter that adopts the state building code and cite it in our letter, so the carrier cannot say the requirement is only the contractor's preference.
- Photos. We photograph the existing decking, eaves, and vents before anything is torn off.
Then we put it in the estimate as its own line items, with the supporting documents attached, so it cannot be mistaken for a markup.
How code items fit with the rest of the estimate
Code items are separate from the question of how much of the roof is covered. If the carrier approved only a repair, there may be no code upgrade to pay for yet. We usually get the direct damage approved first, then argue code items and matching. Our post on partial roof approvals and repairability covers that order of operations.
Also keep timing in mind. Code costs often show up only when the roofer opens the roof, so a good estimate flags likely items early and a good contract lets you add them with documentation.
What carriers say back
Some responses we see often:
- "Code upgrades are excluded." This is where the statute and Campbell may matter, and where we may suggest you speak to an attorney.
- "Pay it when it is incurred." Many policies pay code costs only once the work is done. That can be a fair timing rule, so keep invoices and permits.
- "Not required here." Ask for the carrier's source. A written statement from the building official usually answers it.
- "Capped at a small limit." Some policies have an ordinance and law limit. We read the full policy first, which is why the first weeks of a claim look quiet. Our process page explains that wait.
The honest version
Code upgrades are real money on a roof, and they are easy for a carrier to leave off an estimate. The statute says replacement cost coverage must account for minimum code, and a 2025 decision supports that for sheathing. Beyond that, results depend on your policy, your city, and your facts. No one can honestly promise how a code dispute will end, and you should be suspicious of anyone who does.