Registered Insurance Brokers of Ontario (RIBO) Exam 2026 – 400 Free Practice Questions to Pass the Exam

The correct answer highlights the importance of having specific coverage for increased repair costs due to regulations. When a property policy explicitly insures these costs, it provides a safety net for the policyholder, ensuring that they are financially protected against additional expenses that arise from changes in construction laws. These laws can lead to significant variations in repair costs, making this type of coverage critical for property owners who want to avoid unforeseen financial burdens.

While there may be general stipulations in other options, only specifying these increased costs in the policy guarantees that they will be covered. For instance, being within standard policy limits might not account for all the additional costs imposed by new regulations, and a percentage limit like 10% of the assessment does not provide the needed assurance of coverage. Additionally, exclusions in a policy explicitly point out situations where coverage does not apply, further reinforcing why the specified coverage is essential for protection against increased repair costs related to regulatory changes.