Under BOP, which statement about Ordinance or Law exclusion is accurate?

Under BOP, which statement about Ordinance or Law exclusion is accurate?

• A. The additional cost would be fully covered
• B. The Ordinance or Law exclusion eliminates coverage for the cost to upgrade to codes
• C. There is no ordinance clause in BOP
• D. The Ordinance or Law exclusion does not apply to upgrades

Answer: (B)

Under the BOP, the costs to upgrade repairs to meet current building codes are not covered by default. This is governed by the Ordinance or Law exclusion, which means the extra expense to bring property up to code during repair or replacement after a covered loss is excluded unless you add an endorsement that provides this coverage. The statement that accurately reflects this is: the Ordinance or Law exclusion eliminates coverage for the cost to upgrade to codes. This aligns with the policy’s intent to cover the direct loss to property, not the added costs required by code upgrades. You would need the appropriate endorsement to have those upgrade costs paid.

Under the BOP, the costs to upgrade repairs to meet current building codes are not covered by default. This is governed by the Ordinance or Law exclusion, which means the extra expense to bring property up to code during repair or replacement after a covered loss is excluded unless you add an endorsement that provides this coverage. The statement that accurately reflects this is: the Ordinance or Law exclusion eliminates coverage for the cost to upgrade to codes. This aligns with the policy’s intent to cover the direct loss to property, not the added costs required by code upgrades. You would need the appropriate endorsement to have those upgrade costs paid.