Question

When Herb was just starting out in the textile business, he purchased an older factory building in order to acquire as much square footage as possible, for the lowest cost. After a massive storm blows the roof off the building, Herb finds that the structure will require massive upgrades to bring it up to code. Which endorsement to his commercial property policy can help with this added cost?

A. Ordinance or Law
B. Legal Liability
C. Protective Safeguard
D. Differences in Conditions

Answer 1

The Ordinance or Law endorsement to Herb's commercial property policy can help with the added cost of upgrading the factory building to meet building codes.

Step-by-step explanation:

The endorsement to Herb's commercial property policy that can help with the added cost of upgrading the factory building to meet building codes is Ordinance or Law.

This endorsement provides coverage for the increased cost of construction necessary due to the enforcement of building ordinances or laws. In Herb's case, the massive upgrades required to bring the building up to code after the storm damage would be covered under this endorsement.