Homeowners Policy (HO)Question 317 of 474
Fire destroys most of an older home and the current code requires the rest be rebuilt to new standards. That extra cost is:
a.treated as an additional living expense
b.paid under the other structures limit
c.excluded by the ordinance or law rule
d.paid in full under the Coverage A limit
Explanation
Section I excludes the increased cost of construction, demolition and repair that comes from enforcing a building ordinance or law, so the dwelling limit responds to the fire damage but not to the upgrade the code demands. Other structures covers detached buildings, and loss of use pays living costs, so neither reaches a code-driven construction cost.
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