What options does the insured have under the Ordinance and Law coverage?

Ordinance and Law coverage is an important aspect of property insurance that involves additional costs incurred when rebuilding or repairing a property to comply with current building codes or ordinances after a loss. The options that an insured typically has under this coverage refer to the percentage of coverage available to address the increased costs associated with code upgrades.

In this case, the correct answer indicates that the insured can choose between a 25% and 50% coverage limit. This means that should a property be damaged, the insured can receive coverage equal to 25% or 50% of the total insurance value, specifically allocated for expenses that exceed the basic rebuilding costs due to existing laws and ordinances.

This option provides a safety net for property owners who may face significant financial burdens when required to bring their structures up to code during repairs. The higher the percentage option chosen, the better the protection against unforeseen expenses related to compliance with modern regulations.