Local Authority Clause

LOCAL AUTHORITY CLAUSE #

This section extends to include such additional cost of reinstatement of the property insured (including demolition and site clearance) and alterations and additions thereto as may be incurred solely by reason of the necessity to comply with building or other regulations under or framed in pursuance of any statutory act or with bye-laws of any municipal or local authority following damage to the said property provided that :

1. the amount recoverable under this extension shall not include

1. the cost incurred in complying with any of the aforesaid regulations or bye-laws under which notice has been served upon the insured prior to the happening of the damage
2. the amount of any rate tax duty development or other charge or assessment arising out of capital appreciation which may be payable in respect of the property or by the owner be payable in respect of the property or by the owner thereof by reason of compliance with any of the aforesaid regulations bye-laws;

2. the work of reinstatement must be commenced and carried out with reasonable despatch, and in any case must be completed within such further time as the insurers may (during the said twelve months) in writing, allow and may be carried out wholly or partially upon another site (if the aforesaid regulations and bye-laws so necessitated) subject to the liability of the insurer under this extension not being thereby increased;
3. if the liability of the insurers under any item of the policy apart from this extension shall be reduced by the application of any of the terms and conditions of the policy then the liability of the insurers under this extension in respect of any such item shall be reduced in like proportion;
4. all the conditions of the policy except insofar as they may be hereby expressly varied shall apply as if they had been incorporated herein.