Only the property specifically listed or scheduled on the policy is insured. - ANSWER-Scheduled coverage.
Building, Stock and Equipment are insured under a single limit of insurance. - ANSWER-Property of Every Description (POED) coverage.
All property owned by the insured is covered or "blank...
Only the property specifically listed or scheduled on the policy is insured. - ANSWER-
Scheduled coverage.
Building, Stock and Equipment are insured under a single limit of insurance. -
ANSWER-Property of Every Description (POED) coverage.
All property owned by the insured is covered or "blanketed" by a single limit of
insurance. (May insure property at more than one location.) - ANSWER-All Property
(Blanket) coverage.
1) Building
2) Equipment
3) Stock. - ANSWER-The three classes of property insured by commercial property
insurance policies.
It sets the stock coverage to items that are USUAL to the insured's business. -
ANSWER-Regarding stock coverage, why it's important to provide a proper description
of the business to the insurer.
- The lost or damaged property is similar to that insured by the policy;
- The insured was under an obligation to insure that property;
- The insured was legally liable for it. - ANSWER-"Similar property belonging to others"
is automatically covered under the amounts of insurance for stock and equipment if...
1) Fixed structures located on the premises;
2) Additions and extensions communicating and in contact with the building;
3) Permanent fitting and fixtures attached to and forming part of the building;
4) Materials, equipment and supplies on the premises for maintenance of, and normal
repairs and minor alterations to the building, or for building services;
5) Growing plants, trees, shrubs or flowers inside the building used for decorative
purposes, when the insured owns the building. - ANSWER-The five components found
in the definition of "building" in commercial property policies.
The entire area within the property lines and areas and areas under adjoining sidewalks
and driveways at the location described on the Declarations Page, and in or on vehicles
within 100 meters (328 feet) of such locations. - ANSWER-"Premises."
1) Merchandise of every description usual to the insured's business;
2) Packing, wrapping and advertising materials;
, 3) Similar property belonging to others which the insured is under obligation to keep
insured or for which he is legally liable. - ANSWER-The three components found in the
definition of "stock" in commercial policies.
1) All contents usual to the insured's business (including furniture, fittings, fixtures,
machinery, tools, etc.) other than "building" or "stock";
2) Similar property belonging to others which the insured is under obligation to keep
insured or for which he is legally liable;
3) Tenant's improvements, which are defined as building improvements, alterations, and
betterments made at the expense of the insured to a "building" occupied but not owned
by the insured, and which are not otherwise insured. - ANSWER-The three components
of "equipment" found in commercial policies.
1) Actual Cash Value
2) Replacement Value
3) Book Value. - ANSWER-The three ways property may be valued.
The cost to repair or replace lost or damaged property, less the application of any
depreciation. - ANSWER-The traditional meaning of Actual Cash Value (ACV).
1) Straight Line Depreciation: applies depreciation based on the normal life expectancy
of the building;
2) Plateau Accelerated Depreciation: applies a large amount of depreciation during the
building's early years when its most useful, then depreciation plateaus (levels out). -
ANSWER-The two methods under the Formula/Cost Approach Method to determine the
Actual Cash Value of a building.
A real estate appraiser provides an expert opinion about the fair market value of:
- the property before the loss
- the property after the loss
- the land.
The opinion is influenced by the condition and location of the building compared to
similar properties recently sold in the area. - ANSWER-The Market Value / Direct Sales
Approach to determine the Actual Cash Value of a building.
With the help of a qualified accountant, and especially useful when income is produced
from a dilapidated or run-down building, a capitalization factor is applied to the net
annual rental income. - ANSWER-The Income Approach to determine the Actual Cash
Value of a building.
When the insured says the other methods for determining ACV have failed, because the
building's value is actually higher to the insured, this method applies less depreciation. -
ANSWER-The True Value to the Owner approach to determine the Actual Cash Value
of a building.
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