My question is regarding policy provisions that address undamaged portions of the property. Here is the policy language:
"E. Coverages
1. Coverage A - Coverage For Loss To The Undamaged Portion Of The Building With respect to a covered building that has sustained covered direct physical damage, we will pay under Coverage A for the loss in value of the undamaged portion of the building as a consequence of enforcement of an ordinance or law that requires demolition of undamaged parts of the same building. Coverage A is included within the Limit of Insurance shown in the Declarations as applicable to the covered building. Coverage A does not increase the Limit of Insurance. The Coinsurance Additional Condition does not apply to the undamaged portion of the building when the Limit of Insurance shown in the Declarations for Coverage A is less than the applicable building Limit of Insurance shown in the Declarations.
2. Coverage B - Demolition Cost Coverage With respect to a covered building that has sustained covered direct physical damage, we will pay the cost to demolish and clear the site of undamaged parts of the same building, as a consequence of enforcement of an ordinance or law that requires Demolition of such undamaged property.
The Coinsurance Additional Condition does not apply to Demolition Cost Coverage.
3. Coverage C - Increased Cost Of Construction Coverage
a. With respect to a covered building that has sustained covered direct physical damage, we will pay the increased cost to:
(1) Repair or reconstruct damaged portions of that building; and/or
(2) Reconstruct or remodel undamaged portions of that building, whether or not demolition is required when the increased cost is a consequence of enforcement of the minimum requirements of the ordinance or law.
In this claim, the insured has damage resulting from a hail storm. The insurance company has agreed to replace the roofing system. When the insured pulled a roofing permit, the building jurisdiction is going to require that the insured relocate certain building components to another area of the building. This is going to amount to a significant expense. Initially the insurance company included the relocation of these items under Coverage A of the above-referenced policy provision. However, on subsequent revisions, the carrier has re-allocated these line items to Coverage C. The problem the insured faces is that Coverage C limits will be exhausted far short of the actual cost of relocation."
My question is whether the policy's Coverage A as listed above would provide benefits for this scenario?

The insurance company has accurately reallocated this additional expense to the appropriate Coverage C. Coverage A would apply for example if certain parts of the building had to be torn down that otherwise had no physical damage. Coverage C applies if there are additional expenses required to bring the building up to code or to contemplate the higher costs of unusual construction materials, or even expedited delivery costs of materials, if required in the repair or reconstruction of the building. Coverage C is for the additional costs of building code upgrades so the insurer is right in this circumstance.