The building ordinance or law exclusion typically excludes coverage for which of the following?

• A. Loss due to fire
• B. Additional expenses to rebuild to current building codes
• C. Flood damage
• D. Theft

Answer: (B)

When a building is damaged and must be rebuilt, newer building codes can require upgrades that raise the cost of reconstruction beyond simply replacing what was there. The building ordinance or law exclusion specifically says those increased costs to bring the rebuilt structure up to current codes are not covered by the standard policy. This is why the best answer is the extra expense to rebuild to current building codes. If you want protection for those code-related costs, you’d add an Ordinance or Law endorsement. The exclusion does not remove coverage for the actual peril (like fire) itself; it only excludes the additional costs to meet code requirements.