ISO has revised the Ordinance or Law endorsement CP 04 05 09 17 CP 04 05 09 17, and endorsements that include an ordinance or law option, Functional Building Valuation CP 04 38 09 17 CP 04 38 09 17and Ordinance or Law – Increased Period of Restoration CP 15 31 09 17 CP 15 31 09 17 to include an option to provide ordinance or law coverage on a post-loss basis. This will give the insured the option of purchasing the ordinance or law coverage to be promulgated or revised after the loss but before starting any reconstruction or repair if such ordinance or law is a required condition for obtaining a building permit or certificate of occupancy.

Ordinance or Law Revision

In the Coverage A grant and in the Loss Payment provisions addressing Coverage A, reference to the Limit of Insurance is being elaborated upon to recognize that the building limit might appear in the Declarations or elsewhere in the policy. Further, the aforementioned Loss Payment clause is revised to explicitly convey the information that the building limit in the event of earthquake or flood loss (if such perils are endorsed to the policy) may be lower than the limit that otherwise applies. This change is to correspond with flood coverage that is often sublimited.

Editorial revisions and changes are being made to the format to accommodate the new post-loss option and enhance the flow of text. In some areas, reference to property is replaced with reference to the building to more precisely reference the subject of coverage. Further, the provision appearing in Paragraph G. of the current endorsement is moved to B.7.

The same post-loss Ordinance or Law option is being added to Functional Building Valuation CP 04 38 consistent with CP 04 05, as well as editorial revisions and changes to the format to accommodate the new post-loss option and to enhance the flow of text.