What is the limit for Coverage D - Increased Cost of Compliance (ICC)?

The limit for Coverage D - Increased Cost of Compliance (ICC) is set at $30,000. This coverage is particularly relevant in scenarios where a policyholder must comply with new building codes or regulations after a loss, especially in the aftermath of a disaster. It provides financial support to cover the additional costs incurred during the rebuilding or repair process to ensure that the property meets updated standards.

The $30,000 limit is a standard provision in many policies that address the unforeseen expenses that arise due to regulatory changes that require different or upgraded construction standards than what was previously required. This helps policyholders manage the financial burden associated with compliance, thus facilitating a smoother recovery process.

It is essential to understand the specific coverage limits like this one, as they play a critical role in the decision-making process regarding loss claims and compliance with local codes. This knowledge is vital for adjusters, as they often need to explain these limits to policyholders and ensure accurate compensation is provided in line with the insurance contract.