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THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. THE HARTFORD (iii) If the Building or "tenant improvements and betterments" are repaired or replaced at the same premises, or if you elect to rebuild at another premises, the most we will pay for the Increased Cost of Construction Coverage is the lesser of: (aa) The increased cost of construction at the same premises; or (bb) The Limit of Insurance shown in the Declarations for Ordinance or Law — Demolition Cost and Increased Cost of Construction. (iv) If the ordinance or law requires relocation to another premises, the most we will pay for the increased cost of construction is the lesser of: (aa) The increased cost of construction at the new premises; or (bb) The Limit of Insurance shown in the Declarations for Ordinance or Law — Demolition Cost and Increased Cost of Construction. (4) Paragraph 1.i., Ordinance or Law, of Section B., EXCLUSIONS, does not apply to this Coverage Extension. (5) Additional Exclusions We will not pay under this Coverage Extension for: (a) The enforcement of or compliance with any ordinance or law which requires the demolition, repair, replacement, reconstruction, remodeling or remediation of property due to contamination by "pollutants and contaminants" or due to the presence, growth, proliferation, spread of any activity of "fungi", wet or dry rot, bacteria or virus; (b) The costs associated with the enforcement of or compliance with any ordinance or law which requires any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of "pollutants or contaminants", "fungi", wet or dry rot, bacteria or virus; or (c) Loss due to any ordinance or law that: (i) You were required to comply with before the loss even if the Building or "tenant improvements and betterments" were undamaged; and (ii) You failed to comply with. (6) Example of Proportionate Loss Payment for Ordinance or Law Coverage Losses (procedure as set forth in Paragraph (1)(c) of this Coverage Extension). Assume: • Wind is a Covered Cause of Loss. Flood is an excluded Cause of Loss; • The building has a value of $200,000; • Total direct physical damage to building: $100,000; • The ordinance or law in this jurisdiction is enforced when building damage equals or exceeds 50% of the building's value; • Portion of direct physical damage that is covered (caused by wind): $30,000; • Portion of direct physical damage that is not covered (caused by flood): $70,000; and • Loss under Increased Cost of Construction of this Coverage Extension: $60,000. Step 1: Determine the proportion that the covered direct physical damage bears to the total direct physical damage. $30,000 divided by $100,000 = .30 Step 2: Apply that proportion to the Ordinance or Law loss. $60,000 x .30 = $18,000 In this example, the most we will pay under this endorsement for the Increased Cost of Construction coverage is $18,000, subject to the applicable Limit of Insurance and any other applicable provisions. NOTE: The same procedure applies to losses under Undamaged Part and this endorsement. Form SP 30 11 12 19 © 2019, The Hartford (May include copyrighted material of Insurance Services Office, Inc., with its cF Risk ManVmad DMsian ke7 1'x REVIEWED & APPROVED BY.- 1,,; "° wd --� Risk janagement Analyst