Contingent Liability from Operation of Building Laws Clause

The following additional costs when there is direct physical damage as insured against to building(s) or structure(s), machinery and equipments  covered by this policy and such additional costs are occasioned by the enforcement of any law or ordinance regulating the construction, repair, replacement, use or demolition or removal of building(s) or structure(s), machinery and equipments which is in force at the time of loss and necessitates such costs:

a)    cost of demolishing any undamaged portion(s);

b)    value of the undamaged portion(s) which has been demolished subject to the same basis of recovery which applies to the damaged portion(s) of such building(s) or structure(s).  This cost shall not include any greater cost or repair, replacement, construction or reconstruction due to the enforcement of any law or ordinance;

c)    if the basis of recovery is replacement cost, the increased cost actually expended (excess of b) above) in rebuilding or replacing both the da¬maged and demolished portions on the same Described Location, with like height, floor area and style and for like occupancy to comply with the minimum requirements of such law or ordinance.

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