The cost of construction coverage varies by insurer in both the provisions utilized and the available limits. Many of the basic coverage provisions are similar and provide the following according to
- The requirement that this coverage applies only when the building is written on a replacement cost basis.
- Coverage does not apply where the insured was required to comply with an ordinance or law before the loss, even when the building was undamaged and the insured failed to comply.
- No coverage applies for any costs associated with the enforcement of any ordinance or law requiring an insured to test for, monitor or clean up pollutants, or in any way respond to or assess the effects of pollutants.
- No coverage applies to costs associated with any ordinance or law requiring an insured to respond to fungus, wet or dry rot, or bacteria.
- The covered costs incurred are not payable until the property has been actually repaired or replaced at the same or another premises.
- The insured generally has no more than two years to make the repairs or replacement.
For more information contact a Kimberley Vassal Insurance agent by visiting our website at www.kimberleyvassal.com