ADJUSTERS INTERNAT IONAL . COM 3 A D J U S T I N G T O D A Y (1) The requirement that this coverage applies only when the building is written on a replacement cost basis; (2) Coverage does not apply where the insured was required to comply with an ordinance or law before the loss, even when the building was undamaged and the insured failed to comply; (3) No coverage applies for any costs associated with the enforcement of any ordinance or law requiring an insured to test for, monitor or clean up pollutants, or in any way respond to or assess the effects of pollutants; (4) No coverage applies to costs associated with any ordinance or law requiring an insured to respond to fungus, wet or dry rot, or bacteria; (5) The covered costs incurred are not payable until the property has been actually repaired or replaced at the same or another premises; (6) The insured generally has no more than two years to make the repairs or replacement. Two Ways of Obtaining Coverage Insurance Services Office (ISO) offers two ways to obtain increased cost of construction coverage. The first is in conjunction with its Ordinance or Law Coverage Endorsement (CP 04 05). It provides coverage not only for increased costs of construction (Coverage C), but also for losses associated with undamaged portions of the building (Coverage A) — as well as for demolition costs (Coverage B). These items are discussed in Adjusting Today issue #3009, “Ordinance or Law Coverage — Code for Recovery!” The second way ISO provides increased cost of construction coverage is automatically through the “additional coverages” section of the Building and Personal Property Coverage Form (CP 00 10) and CondominiumAssociation Coverage Forms (CP 00 17 and CP 00 18). In this case, the increased Increased cost of construction coverage varies by insurer in both the provisions utilized and the available limits. “ ”
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