Ordinance or Law Not Applicable to Construction of Parking Lot

An insured has a building with no parking. A current ordinance requires buildings to have parking. If the insured has a covered loss, and the ordinance requires parking, will the insurer pay the cost to build the parking area, under coverages A, B, or C of an ISO Ordinance or Law coverage form?

Pennsylvania Subscriber

The coverages in that form apply to A. undamaged portions of the building, B. demolition cost, and C. increased cost of construction with respect to the building that has sustained direct physical damage. Since a parking lot or structure does not already exist, it would not fit into the descriptions of coverages A, B, and C. Thus, the insurer would not pay for a parking lot or structure to be built.