Which coverage addresses ordinances or laws that regulate the construction of buildings?

Ordinance or law coverage is specifically designed to address the additional costs incurred due to laws or ordinances that regulate the construction of buildings, especially when they impact repair or rebuilding after a loss. This coverage helps property owners comply with updated building codes or other regulations that may not have existed at the time of the original construction.

For instance, after a property is damaged due to a covered peril, the owner may need to bring the building up to current codes, which could involve significant expenses that are not covered by standard property insurance. This coverage ensures that property owners are protected against the financial burden of meeting these legal requirements when they are rebuilding or repairing their structures.

In contrast, personal property coverage pertains specifically to the belongings within a structure, liability coverage deals with protection against claims for bodily injury or property damage to others, and flood insurance coverage provides protection against damages caused by flooding. Each of these other types of coverage serves distinct purposes and does not address the specific regulatory requirements associated with the rebuilding or renovation of a structure as directly as ordinance or law coverage does.