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the covered direct physical <br />damage bears to the total <br />direct physical damage. <br />Paragraph (7) of this coverage <br />provides an example of this <br />procedure. <br />However, if the covered direct <br />physical damage alone would have <br />resulted in a requirement to <br />comply with the ordinance or law, <br />then we will pay the full amount of <br />the loss otherwise payable under <br />the terms of Coverages for Loss to <br />the Undamaged Portion of the <br />Building, Demolition Cost Coverage <br />or Increased Cost of Construction <br />Coverage under this Additional <br />Coverage. <br />(3) We will not pay under this <br />Additional Coverage for: <br />(a) Enforcement of or compliance <br />with any ordinance or law <br />which requires the demolition, <br />repair, replacement, <br />reconstruction, remodeling or <br />remediation of property due to <br />contamination by "pollutants" <br />or due to the presence, growth, <br />proliferation, spread or any <br />activity of "fungi", wet rot or dry <br />rot; or <br />(b) The costs associated with the <br />enforcement of or compliance <br />with any ordinance or law <br />which requires any insured or <br />others to test for, monitor, <br />clean up, remove, contain, <br />treat, detoxify or neutralize, or <br />in any way respond to, or <br />assess the effects of <br />"pollutants", "fungi", wet rot or <br />dry rot. <br />(4) Coverage <br />(a) Coverage for Loss to the <br />Undamaged Portion of the <br />Building <br />391-1003 08 16 <br />With respect to the building that <br />has sustained covered direct <br />physical damage, we will pay <br />under this Additional Coverage <br />for the loss in value of the <br />undamaged portion of the <br />building as a consequence of a <br />requirement to comply with an <br />ordinance or law that requires <br />demolition of undamaged parts <br />of the same building. Coverage <br />for Loss to the Undamaged <br />Portion of the Building is <br />included within the Limit of <br />Insurance shown in the <br />The <br />Hanover <br />Insurance Group- <br />ODFD785344 5701644 <br />Declarations as applicable to <br />the covered building. Coverage <br />for Loss to the Undamaged <br />Portion of the Building does not <br />increase the Limit of Insurance. <br />(b) Demolition Cost Coverage <br />With respect to the building that <br />has sustained covered direct <br />physical damage, we will pay <br />the cost to demolish and clear <br />the site of the undamaged parts <br />of the same building, as a <br />consequence of a requirement <br />to comply with an ordinance or <br />law that requires demolition of <br />such undamaged property. <br />SECTION I - PROPERTY, E. <br />Property Loss Conditions, 5. <br />Loss Payment, paragraph d. <br />does not apply to Demolition <br />Cost Coverage. <br />(c) Increased Cost of Construction <br />With respect to the building that <br />has sustained covered direct <br />physical damage, we will pay <br />the increased cost to: <br />(i) Repair or reconstruct <br />damaged portions of that <br />building; and/or <br />(11) Reconstruct or remodel <br />undamaged portions of that <br />building, whether or not <br />demolition is required; <br />when the increased cost is a <br />consequence of a requirement <br />to comply with the minimum <br />standards of the ordinance or <br />law. <br />However: <br />(i) This coverage applies only <br />if the restored or remodeled <br />property is intended for <br />similar occupancy as the <br />current property, unless <br />such occupancy is not <br />permitted by zoning or land <br />use ordinance or law. <br />(ii) We will not pay for the <br />increased cost of <br />construction if the building <br />is not repaired, <br />reconstructed or <br />remodeled. <br />SECTION I - PROPERTY, E. <br />Property Loss Conditions, 5. <br />Loss P <br />does no xet <br />Cost of 1 Re ego <br />A.5�, "44 <br />`� Risk Management Speaallst <br />Includes copyrighted material of Insurance Services Office, Inc., with its <br />