Increased Cost of Construction Coverage



Two Ways of Obtaining Coverage

Insurance Services Office (ISO) offers two ways to obtain increased cost of construction coverage. The first is in conjunction with its Ordinance or Law Coverage Endorsement (CP 04 05). It provides coverage not only for increased costs of construction (Coverage C), but also for losses associated with undamaged portions of the building (Coverage A) — as well as for demolition costs (Coverage B). These items are discussed in Adjusting Today issue #3009, “Ordinance or Law Coverage — Code for Recovery!”

The second way ISO provides increased cost of construction coverage is automatically through the “additional coverages” section of the Building and Personal Property Coverage Form (CP 00 10) and CondominiumAssociation Coverage Forms (CP 00 17 and CP 00 18). In this case, the increased...

“Increased cost of construction coverage varies by insurer in both the provisions utilized and the available limits.”