Increased Cost of Construction Sample Clauses
Increased Cost of Construction. Building codes change. If a structure was erected prior to the change, the building usually is “grandfathered” as to complying with the changes. However, if loss or damage to the building occurs the local government can mandate that the building be constructed or repaired to meet current building codes. This typically is not anticipated in developing the replacement cost of the building; therefore adequate limits will not provide protection for this situation. Coverage under this endorsement covers this gap in protection.
Increased Cost of Construction. In the event of physical damage to “Covered Property” insured by a “Covered Peril,” this “Memorandum” is extended to cover the increased cost of repair or replacement occasioned by the enforcement of any local or state ordinance or law in any state regulating the construction, repair or demolition of buildings or structures, which is in force at the time such a loss occurs or which comes into force within six (6) months after such a loss occurs, which necessitates in repairing or replacing the building covered hereunder which has suffered damage or destruction by the “Covered Peril” or which has undergone demolition, limited, however, to the minimum requirements of such ordinance or law.
Increased Cost of Construction. 1) This Agreement covers the reasonable and necessary costs incurred, described in Item 3) below, to satisfy the minimum requirements of the enforcement of any law or ordinance regulating the demolition, construction, repair, replacement or use of buildings or structures at a Covered Property, provided:
a. Such law or ordinance is in force on the date of covered physical loss or damage; and
b. Its enforcement is a direct result of such covered physical loss or damage; and
2) This Additional Coverage does not cover any loss due to any law or ordinance with which the Named Member should have complied before the loss.
3) This Additional Coverage, as respects the property covered in Item 1) above, covers:
a. The cost to repair or rebuild the physically damaged portion of such property with materials and in a manner to satisfy such law or ordinance; and
b. The cost:
(i) to demolish the physically undamaged portion of such property covered; and
(ii) to rebuild it with materials and in a manner to satisfy such law or ordinance; to the extent that such costs result when the total demolition of the physically damaged covered property is required to satisfy such law or ordinance.
SECTION I PROPERTY (continued)
4) This Additional Coverage excludes any costs incurred as a direct or indirect result of enforcement of any laws or ordinances regulating any form of contamination including but not limited to the presence of Pollution or hazardous material.
5) ▇▇▇▇’s maximum liability for this Additional Coverage at each Covered Property in any occurrence will not exceed the actual cost incurred in demolishing the physically undamaged portion of the property covered in Item 1) above plus the lesser of:
a. The reasonable and necessary cost incurred, excluding the cost of land, in rebuilding on another site; or
b. The cost of rebuilding on the same site.
Increased Cost of Construction. This section covers the reasonable and necessary costs incurred, described below, to satisfy the minimum requirements of the enforcement of any law or ordinance regulating the demolition, construction, repair, replacement or use of buildings or structures, provided:
a. Such law or ordinance is in force on the date of insured physical loss or damage; and
b. Its enforcement is a direct result of such insured physical loss or damage; and
c. This additional coverage does not cover any loss due to any law or ordinance with which you should have complied before the loss.
d. The cost to repair or rebuild the physically damaged portion of such property with materials and in a manner to satisfy such law or ordinance; and
e. The cost:
(1) to demolish the physically undamaged portion of such property insured; and
(2) to rebuild it with materials and in a manner to satisfy such law or ordinance to the extent that such costs result when the total demolition of the physically damaged insured property is required to satisfy such law or ordinance.
f. This additional coverage excludes any costs incurred as a direct or indirect result of enforcement of any laws or ordinances regulating any form of contamination including but not limited to the presence of a pollutant or hazardous material.
g. The maximum liability for this additional coverage at each covered property in any occurrence will not exceed the actual cost incurred in demolishing the physically undamaged portion of the property insured plus the lesser of:
(1) The reasonable and necessary cost incurred, excluding the cost of land, in rebuilding on another site; or
(2) The cost of rebuilding on the same site.