Ordinance or law coverage in admitted P&C products

ORDINANCE OR LAW COVERAGE

The following Additional Coverages apply only to covered buildings written on a replacement cost basis.

(1) APPLICATION OF COVERAGE(S)
The Additional Coverage for Ordinance or Law Coverage provided by this endorsement applies only if both item (a) and (b) are satisfied and are then subject to the qualifications set forth in (c) below.

(a) The ordinance or law:
(i) Regulates the demolition, construction, or repair of buildings, or tenants' improvements and betterments, or establishes zoning or land use requirements at the described premises; and
(ii) Is in force at the time of loss.

But coverage under this endorsement applies only in response to the minimum requirements of the ordinance or law. Losses and costs incurred in complying with recommended actions or standards that exceed actual requirements are not covered under this endorsement.

(b) The building or tenants' improvements and betterments sustain direct physical loss or direct physical damage that is covered under this policy and, as a result, you are required to comply with the ordinance or law.

Selected excerpt from this form.

1. 01Requires replacement-cost buildings and a covered direct physical loss trigger.
2. 02Limits coverage to laws regulating demolition, construction, repair, zoning, or land use.
3. 03Pays only for minimum legal requirements, not recommended upgrades above actual requirements.