TWIA Automatic Adjusted Building Cost (ABC) Endorsement

Attention Agents: Annual Update to the Automatic Adjusted Building Cost Endorsement
We’re updating the factors for the Automatic Adjusted Building Cost (ABC) endorsement (TWIA-220) based on our annual review of building cost index data. The TWIA-220 endorsement automatically adjusts the Coverage A (Dwelling) limit of liability at renewal, along with any coverages rated off the dwelling limit (e.g., Additional Living Expense).  

Coverage A Limits Will Increase for September Renewals
Coverage A limits will increase by approximately 3% for renewal policies with effective dates on or after September 1, 2026.  

What to Discuss With Your Clients
Because this change impacts a policy’s limits of liability, TWIA encourages you to discuss two issues with your clients: 

• The policy premium will increase in correlation with the higher Coverage A limit. 
• While the deductible percentage selected for the policy will not change, the deductible dollar amount will increase due to the increase in the Coverage A limit. 

Clients May Request a Different Limit
Policyholders may request a different limit of liability, including reinstating the previous year’s limit, by working with you, their agent. However, this may affect the policy’s eligibility for replacement cost coverage. 

Requests Must Be Submitted Before Renewal
Requests to change the limit of liability must be received by TWIA before the policy’s renewal date. If a request is received after the renewal date, it will be processed as a mid-term endorsement effective no earlier than the date it is received (i.e., it will not backdate to the renewal date). 

If you have any questions, please contact us.