phrase
ordinance or law
In plain English
Coverage for the extra cost of rebuilding to current code after a loss, when the building wasn't up to code before.
Older buildings get rebuilt to today's code, not the old code. That can mean new wiring, plumbing, structural members, ADA upgrades. Standard policies don't cover that cost gap — ordinance-or-law endorsement does.
What it covers
Three coverages bundled: A (loss to undamaged portions of the building because code requires demolition), B (cost of demolition), C (increased cost of construction to comply with current code).
What it does not cover
It is NOT general 'code upgrade' coverage. The trigger has to be a covered loss first. If the building never burned, ordinance-or-law doesn't pay to bring it up to code preemptively.
Where it trips people up
Older urban buildings often need ordinance-or-law sublimits well above the default $10K-$25K. A 1920s commercial building in Kansas City could easily need $100K-$250K of Coverage C alone.
The technical version
Coverage for the increased cost of repair, replacement, or rebuilding required by enforcement of any ordinance or law regulating construction, repair, or demolition, following a covered loss.