Increased Cost of Construction Coverage

4 ADJUSTINGTODAY. COM A D J U S T I N G T O D A Y cost of construction coverage provides an additional amount of insurance limited to $10,000 or 5 percent of the limit of insurance applicable to the building, whichever is less. If insurance applies on a blanket basis, the 5 percent is applied to the value of the building at the time of loss. The 5 percent limit also applies to each described building. As noted, the automatic coverage applies only to the damaged parts of the building, whereas the coverage provided under the Ordinance or Law Endorsement (CP 04 05) applies to both damaged and undamaged portions of the building. If insurance applies on a blanket basis, the 5 percent is applied to the value of the building at the time of loss. “ ”

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