Property · Insurance Term
Loss to Undamaged Portion (Ordinance or Law Coverage A)
Definition
Loss to the undamaged portion is the part of ordinance or law coverage that pays for the value of undamaged parts of a building that must be torn down because of building laws after a covered loss. It is often called Coverage A.
In Plain English
Some local rules require a heavily damaged building to be fully demolished, even if part of it is still standing. Without this coverage, a standard property policy generally pays only for the part that was physically damaged. The rest is treated as a loss caused by the law, not by the fire or storm.
Coverage A is one part of ordinance or law coverage. It works together with demolition cost coverage, which pays to tear down and haul away the undamaged part, and increased cost of construction, which pays for code upgrades in the rebuild.
In many policies, Coverage A is included within the building limit rather than as an added amount. Ask how your policy handles it, because that can affect whether your building limit is enough for a large loss.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical: a storm damages 60% of an older warehouse, and local rules require full demolition. The undamaged 40% was worth $400,000. With Coverage A, the policy may pay for that $400,000 portion, subject to the building limit and other terms.
What to Watch For
- Ask whether your policy includes Coverage A and whether it sits within the building limit.
- Ask your city or a contractor whether local rules could require full demolition after major damage.
- Check that your building limit is high enough to handle a total loss.
- Review Coverages A, B and C together, not separately.
Last updated October 14, 2026 · Primesure editorial team · How We Write