Increased Cost of Construction. Building codes change. If a structure was erected prior to the change, the building usually is “grandfathered” as to complying with the changes. However, if loss or damage to the building occurs the local government can mandate that the building be constructed or repaired to meet current building codes. This typically is not anticipated in developing the replacement cost of the building; therefore adequate limits will not provide protection for this situation. Coverage under this endorsement covers this gap in protection.
Appears in 7 contracts
Samples: Land Use Restriction Agreement, Land Use Restriction Agreement, Land Use Restriction Agreement for Low Income Housing Tax Credits
