ORDINANCE OR LAW COVERAGE.
The standard unendorsed ISO building and personal property coverage form excludes coverage for any costs associated with the operations of building laws or ordinances. This endorsement can be purchased to provide coverage for the increased costs and effects due to building laws that had previously been grandfathered but that are activated because of a significant loss. Coverage A applies when laws require that a building not meeting current building codes be torn down following a significant loss so that it can either be constructed to meet current standards or that the owner must move to another location. Coverage A covers the value of the undamaged portion of the building that must be destroyed. Coverage B pays for the cost to demolish the undamaged portion of the building. Coverage C covers the increased cost of construction required to meet current building codes.