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Subject to this combined Limit of <br />Insurance, the following loss <br />payment provisions apply: <br />(i) For Demolition Cost, we will <br />not pay for more than the <br />amount you actually spend <br />to demolish and clear the <br />site of the described <br />premises. <br />(II) With respect to the <br />Increased Cost of <br />Construction: <br />(1) We will not pay for the <br />Increased cost of <br />construction: <br />lhr <br />Hanover <br />ITria Ice Group.. <br />0839898815 1001051 <br />then the most we will pay <br />under this Additional <br />Coverage, for each damaged <br />building is $5,000 or the <br />amount shown in the <br />Additional Property <br />Coverage Schedule. <br />This Additional Coverage is not subject <br />to the Limits of Insurance of Section I - <br />Property. <br />(6) Under this coverage, we will not pay for <br />loss due to any ordinance or law that: <br />(a) You were required to comply with <br />before the 'loss, even if the <br />building was undamaged; and <br />(a) Until the property Is (b) You failed to comply with. <br />actually repaired or (7) Example of Proportionate Loss Payment <br />replaced, at the for Ordinance or Law Coverages <br />same or another (procedures as set forth in Section <br />premises; and 1.24) of this coverage): <br />(b) Unless the repairs or <br />replacement are <br />made as soon as <br />reasonably possible <br />after the loss or <br />damage, not to <br />exceed two years. <br />(iii) If the building Is repaired or <br />replaced at the same <br />premises, or if you elect to <br />rebuild at another premises, <br />the most we will pay for the <br />increased cost of <br />construction is the increased <br />cost of construction at the <br />same premises. <br />(iv) If the ordinance or law <br />requires relocation to <br />another premises, the most <br />we will pay for the increased <br />cost of construction is the <br />Increased cost of <br />construction at the new <br />premises. <br />(v) The most we will pay for <br />loss under Demolition Cost <br />and Increased Cost of <br />Construction for each <br />described building insured <br />under this coverage form is <br />$5,000 or the amount shown <br />in the Additional Property <br />Coverage Schedule. If a <br />damaged building(s) Is <br />covered under a blanket <br />Limit of Insurance which <br />applies to more than one <br />building or item of property, <br />Assume: <br />Wind is a Covered Cause of Loss; <br />Flood is an excluded Cause of Loss <br />The building has value of $50,000 <br />The total direct physical damage to <br />the building: $25,000 <br />The ordinance or law in this <br />jurisdiction is enforced when <br />building damage equals or exceeds <br />50% of the building's value <br />Portion of direct physical damage <br />that is covered (caused by wind): <br />$7,500 <br />Portion of direct physical damage <br />that is not covered (caused by <br />flood): $17,500 <br />Loss under Law or Ordinance, <br />Increased Cost of Construction of <br />this coverage: $15,000 <br />Step 1: Determine the proportion that <br />the covered direct physical damage <br />bears to the total direct physical <br />damage. <br />$7,500 divided by $25,000 = .30 <br />Step 2: Apply that portion to the <br />Ordinance or Law loss. <br />$15,000 x .30 = $4,500 <br />In this example, the most we will pay <br />under this endorsement for the <br />Increased Cost of Construction loss is <br />$4,500 subject to the applicable Limit of <br />Insurance and any other applicable <br />provisions. <br />Note: The same procedure applies to <br />391. 1003 06 09 Includes copyrighted material of Insurance Services Page 15 of 66 <br />17,959 Office, Inc. with its permission <br />