Ordinance or Law Coverage
What this clause says
Coverage A: Loss to the Undamaged Portion of the Building. Coverage B: Demolition Cost. Coverage C: Increased Cost of Construction, arising from the enforcement of any ordinance or law regulating construction or repair.
What this actually means
Ordinance or law coverage pays the extra cost created when a building code forces you to rebuild differently than what was there. It comes in three parts: the value of the undamaged portion a code official orders demolished, the cost of that demolition, and the increased cost of rebuilding to current code.
What it means for an operator
This matters more for a licensed care facility than for almost any other occupancy, because you rebuild to two codes at once. Ordinary construction code applies, and so do the physical plant standards attached to your license and to CMS certification: corridor widths, door dimensions, fire suppression, generator capacity, and room configuration. An older facility that is lawfully operating on nonconforming status loses that status once it rebuilds, so the replacement has to meet current standards throughout. The gap between rebuilding what you had and rebuilding what the license now requires can be very large, and it is exactly what ordinance or law Coverage C exists to pay. Size Coverage C deliberately rather than accepting the default sublimit.
How this evaluates
The Policy Checker applies these rules in order; the first match wins.
has ordinance or law is set -> Compliant: Ordinance or law coverage is in place. Confirm the Coverage C increased cost of construction sublimit is sized against current licensure physical plant standards, not just building code. has ordinance or law is not set -> Gap: Without ordinance or law coverage, the cost of rebuilding a nonconforming licensed facility to current physical plant standards falls entirely on the operator.
See this in your policy
Check this term against your own program.
Run the Policy Checker