Plain-English meaning
Coverage for certain added costs caused by enforcement of building codes or laws after covered damage, subject to limits and triggers.
Why it matters
Rebuilding an older structure to current code can cost more than replacing damaged materials as they were.
Where you may see it
Endorsements, Coverage A extensions, reconstruction estimates, and building-department requirements.
What to verify
Demolition, undamaged portion, increased construction cost, limit, trigger, and exclusions.
Do not confuse it with
Ordinary dwelling coverage or maintenance needed without a covered loss.
For policy-specific meaning, read the definition and related provision in the issued policy.