Which type of coverage addresses upgrades to property in compliance with modern building codes?

The correct type of coverage that addresses upgrades to property in compliance with modern building codes is ordinance or law coverage. This coverage is specifically designed to help property owners meet the costs associated with bringing a building up to current codes after a loss. When a property is damaged, there may be modern building codes that require upgrades or improvements that would not have been necessary when the building was originally constructed. Ordinance or law coverage provides financial support for these potential additional costs, ensuring that the property can comply with updated regulations.

Comprehensive coverage generally refers to a broader type of insurance that covers a wide range of risks, but it does not specifically focus on building code compliance. Liability coverage protects against claims of bodily injury or property damage to others, which is entirely unrelated to property upgrades under building codes. Personal property coverage is focused on protecting individual belongings and possessions rather than the structural aspects of a property and its compliance with regulations.