Dwelling PolicyQuestion 131 of 215
After a covered fire, the city building department requires the owner to upgrade the dwelling's electrical wiring to current code before reoccupancy, adding $20,000 to the rebuild cost. Which coverage responds to this extra cost?
a.Coverage A automatically pays the upgrade
b.The Ordinance or Law Endorsement
c.Coverage B Other Structures
d.The Personal Property Replacement Cost Endorsement
Explanation
The ISO Dwelling forms exclude increased construction costs caused by the enforcement of any ordinance or law regulating construction, repair, or demolition. An Ordinance or Law Endorsement adds back coverage, usually as a percentage of Coverage A, for the increased cost of complying with building codes during repair or rebuilding. Coverage A alone does not include this exclusion buy-back.
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Related questions on this topic
- An investor owns a duplex rented to two tenant families and wants the broadest property coverage on the building itself. Which dwelling form is the best fit?
- A landlord's rental house is damaged by a covered fire and is unrentable for four months while it is repaired. Which coverage pays the landlord for the rent that would have been collected?
- Compared to DP-1, the DP-2 Broad Form adds which group of perils to the dwelling coverage?
- Which of the following losses to a dwelling would be excluded under all three ISO Dwelling Property forms?
- Which endorsement would an agent recommend so an insured can schedule a $25,000 diamond ring and a $10,000 fine art collection with broader coverage and no theft sublimit?
- By default, on what basis is personal property (Coverage C) settled under any of the ISO Dwelling Property forms?
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