What is the primary purpose of the ordinance or law coverage endorsement?

The primary purpose of the ordinance or law coverage endorsement is to remove the exclusion of losses from ordinances or laws. This endorsement is crucial for property insurance policies because standard policies often exclude coverage for costs incurred to comply with local building codes or ordinances that may affect the rebuilding or repair of damaged property.

When a property is damaged, it may need to be brought up to current building codes or may not be allowed to be rebuilt in the same manner as before due to zoning laws or other regulations. The ordinance or law coverage endorsement provides the necessary protection by covering these additional costs associated with compliance. This ensures that property owners can rebuild not just the physical structure but also meet the updated legal requirements, potentially avoiding financial hardship due to unexpected regulatory expenses. Hence, the endorsement effectively addresses these critical aspects of property recovery after a loss.