We are insuring the builder of a seventeen floor apartment building. Would we have a potential coverage problem if we had a fire loss, or other covered peril loss, on a lower level that so damaged the integrity of the structure that the city authorities stepped in and required the owner to demolish the entire structure? We refer, of course, to the exclusion of expenses arising out of the enforcement of building ordinances and laws. Do we require ordinance or law coverage by way of endorsement to cover this exposure? We are not concerned about the increased cost of construction aspect, as the building is designed to state-of-the-art specifications.

Ohio Subscriber

In this case, the property policy—unadorned by the ordinance or law endorsement—would respond to the total loss, up to policy limits. The answer is essentially that this is no different, really, than settling any fire loss where damage is so great as to cause a total loss.