Many safety code items that were not included as part of the original building may not be covered under the property limit of your association’s policy. Additional insurance, which would include all building code and ordinance coverage, needs to be purchased so that a necessary and required upgrade (i.e. fire sprinklers) would then be a covered loss. The demolition portion would pay for the demolition of the undamaged portion of the building so the sprinklers can be installed in the whole building. The property portion of this coverage would provide for the actual cost of the sprinklers. In addition, this coverage also pays for the demolition of undamaged portions of the building that need to be altered in order to comply with code when the building is being rebuilt
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