What additional coverage can help pay for extra costs due to a new fire sprinkler requirement in Patty's building permit?

The answer is correct because increased cost of construction coverage specifically addresses the financial implications associated with complying with new building codes and ordinances, such as the installation of fire sprinklers. When a building's permit requires upgrades to meet current safety standards, increased cost of construction coverage helps cover the additional expenses that arise from these improvements beyond what might be covered under a standard policy.

This type of coverage is particularly relevant when there are regulatory changes that necessitate significant modifications to a structure, ensuring that the owner can afford to meet those new requirements without incurring unmanageable financial strain. It is designed to help property owners stay compliant with evolving safety standards and building regulations while mitigating the financial burden these changes can impose.

Other options may not adequately address the additional construction requirements or costs tied specifically to building code changes. Enhanced liability coverage focuses on protecting against claims or damages and would not cover the costs related to construction upgrades. Business income coverage is concerned with the loss of revenue due to business interruption and wouldn’t provide financial relief for actual construction costs. Building ordinance coverage does cover costs associated with bringing a building up to current code if damaged, but it typically pertains to costs incurred after a loss rather than preemptively meeting new code requirements.