(November 2023)
Ordinance
or Law Coverage is not automatically included in a mobilehome policy. This form provides, for an
additional premium, protection against a potentially serious source of loss.
The
form includes a space for entering a percentage. The coverage amount is
expressed and selected as a percent of the applicable policy’s Coverage A
limit.
|
Example: Cassie owns a double-wide
mobilehome and decides to add Ordinance or Law Coverage for 12%. |
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Coverage
A Limit - $43,000 |
Selected
Percentage – 12% |
Dollar
Coverage - $5,160 |
As
is the case with many other ISO endorsements, if no information is entered on
this form, it can appear on the policy declarations or elsewhere.
Protection is for the increased costs caused by the
enforcement of an ordinance or law regulating construction, demolition,
remodeling, renovation, or repair of any part of a covered building or
structure that has been damaged by a covered cause of loss. The demolition and
reconstruction of the undamaged part of a covered building or structure is part
of this coverage. Also covered is any remodeling, removal, or replacement of
the portion of the undamaged part of a covered building or other structure.
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Example: More
than half of Cassie’s mobilehome
is destroyed by a fire. The damage is estimated at $26,000 to make full
repairs. A city inspector tells Cassie that the anchor and tiedown system
does not comply with local codes and will have to be upgraded in both the new
and undamaged structure. The upgrade and retrofit expense is nearly $3,000.
Her Ordinance or Law Coverage limit will handle this additional expense. |
The limit on an applicable MH 04 08 form also applies to the
increased cost to remove any debris created by the efforts of:
property that has been damaged by a covered source of loss.
Be aware that using this coverage only applies to increased debris removal
costs associated with the law or ordinance. Also, any application toward such
costs reduces the applicable limit.
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Example: Returning to Cassie’s loss,
a substantially higher level of debris is created by the ordinance as all of
the anchor and tiedown materials and supports are removed. It will cost an additional
$1,700 to pick-up, transport and dispose of the material. Some, but not all,
of the added expense can be handled by Cassie’s Ordinance and Law Coverage.
Since only $870 in coverage remains after handling the additional repair and
retrofit costs, Cassie will have to pay $830 of the debris removal cost ($1,700
- $870= $830). |
Note: This is an
additional amount of coverage. Payment under this form does not affect the
total available coverage for any damage to a covered mobilehome or other covered structure.
This coverage does not respond to any construction-related
expenses created by or related to pollution.
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Example: Again, let’s use Cassie’s
loss. This time, a post-loss inspection reveals that the debris from her mobilehome includes asbestos-lined
panels. An inspector tells Cassie that it will arrange to have the materials
removed, The city sends Cassie a bill for $2,450. Cassie, in turn, sends it
to her insurer. The insurer rejects this portion of her claim as it was
related to removal of a pollutant. |
Besides damage caused by pollution, prohibited expenses
include those related to testing, monitoring, remediating, or otherwise
treating or responding to such events. The form uses the same broad definition
of pollution that is used in ISO’s base property policy forms and endorsements.