Which additional coverage can aid Shanice with increased repair costs due to new building codes?

Ordinance or Law coverage is specifically designed to assist property owners like Shanice with the additional expenses incurred when complying with new building codes following a loss. When a property is damaged, local ordinances may require that the rebuilding adhere to updated codes that can necessitate more costly materials or construction methods than what was originally in place. This type of coverage helps policyholders manage those extra costs that arise from such legal requirements.

For example, if a building is damaged by a fire and local codes have changed since it was originally built, Ordinance or Law coverage would help pay for the expenses associated with making the necessary updates to comply with current regulations. This can include the cost of upgrading electrical systems, plumbing, or even structural elements to be up-to-date with today's safety and building standards.

The other types of coverage listed do not address this specific need. Replacement Cost coverage focuses on replacing damaged items or structures at current market value without factoring in improvements required by updated codes. Damage to Property coverage is typically related to insuring against some form of property damage and does not specifically cover code-related increases. Builder’s Risk coverage is aimed at construction projects in progress and does not apply after a property has been completed and a loss occurs based on new codes.