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THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. Form SP 30 11 12 19 Page 2 of 3 © 2019, The Hartford (May include copyrighted material of Insurance Services Office, Inc., with its permission) requirement to comply with an ordinance or law that requires demolition of such undamaged property. (ii)Increased Cost of Construction With respect to the Building or “tenant improvements and betterments”that have sustained covered direct physical damage, we will pay the increased cost to: (aa)Repair or reconstruct damaged portions of that Building or “tenant improvements and betterments”; and/or (bb)Reconstruct or remodel undamaged portions of that Building or “tenant improvements and betterments”, whether or not demolition is required; when the increased cost is a consequence of a requirement to comply with the minimum standards of the ordinance or law. However this coverage applies only if the restored or remodeled property is intended for similar occupancy as the current property,unless such occupancy is not permitted by zoning or land use ordinance or law.Additionally,we will not pay for the increased cost of construction if the Building or “tenant improvements and betterments” are not repaired, reconstructed, or remodeled. Paragraph E.5.d within the Loss Payment condition does not apply to Demolition Cost and Increased Cost of Construction coverages. (3)Loss Payment (a)All following loss payment provisions (3)(b)and (3)(c)are subject to the apportionment procedure set forth in Paragraph (1)(c) of this Coverage Extension. (b)When there is a loss in value of an undamaged portion of a Building or “tenant improvements and betterments”to which Undamaged Part coverage applies,the loss payment for that Building or “tenant improvements and betterments”,including damaged and undamaged portions,will be as follows: (i)If the property is repaired or replaced on the same or another premises,we will not pay more than the lesser of: (aa)The amount you actually spend to repair,rebuild,or reconstruct the Building or “tenant improvements and betterments”but not more than the amount it would cost to restore the Building or “tenant improvements and betterments”at the same premises and to the same height, floor area, style, and comparable quality of the original property insured; or (bb)The Limit of Insurance shown in the Declarations for Ordinance or Law - Undamaged Part. (ii)If the property is not repaired or replaced, we will not pay more than the lesser of: (aa)The actual cash value of the Building or “tenant improvements and betterments”at the time of loss; or (bb)The Limit of Insurance shown in the Declarations for Ordinance or Law - Undamaged Part. (c)The most we will pay for the total of all covered losses for Demolition Cost and Increased Cost of Construction coverage is the Limit of Insurance shown in the Declarations for Ordinance or Law – Demolition Cost and Increased Cost of Construction.Subject to this combined Limit of Insurance,the following loss payment provisions apply: (i)For Demolition Cost coverage,we will not pay more than the amount you actually spend to demolish and clear the site of the “scheduled premises”. (ii)With respect to the Increased Cost of Construction: (aa)We will not pay for the increased cost of construction until the property is actually repaired or replaced at the same or another premises; and (bb)Unless the repairs or replacement is made as soon as reasonably possible after the loss or damage, not to exceed two years. We may extend this period in writing during the two years. Docusign Envelope ID: 9DF92A24-B534-85BA-8088-342315DF1839