Essential Info
- Older properties may benefit from the Increased Cost of Construction Endorsement.
- Endorsements TWIA-431 (residential) and TWIA-432 (commercial) cover the increased costs associated with required code upgrades.
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Dear Agent,
Making the Most of TWIA Coverage: ICC
Policyholders are often shocked to learn that standard insurance policies won’t pay for upgrades required by current building codes. TWIA’s Increased Cost of Construction (ICC) endorsement offers coverage for policyholders in these circumstances.
Common items subject to building ordinances include doors, windows, garage doors, siding, insulation, electrical systems, framing, roofing, foundations, and elevation requirements.
TWIA does not pay for upgrades required for building code changes unless the ICC endorsement is purchased. Endorsements TWIA-431 (residential) and TWIA-432 (commercial) cover the increased costs associated with required code upgrades. The ICC endorsement only provides funds if those costs are directly related to code-related upgrades. Coverage amounts are offered at 5, 10, 15, or 25 percent of the Coverage A (Building) limit of liability.
As you review your book of business, ensure your clients know what they are giving up if they choose to decline ICC coverage.
For more information, visit TWIA’s Increased Cost of Construction resource page.
Sincerely,
Texas Windstorm Insurance Association
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