Property Principles and Contract Exercise
Name:
1. A commercial building is insured on a Basic Perils Policy. The value of the building is $2,500,000.
The building is insured in the amount of $1,500,000 with a deductible of $5,000. The coinsurance clause
is 80%.
There is a partial fire loss with damages in the amount of $80,000. How much will be paid for this
claim?
2. The building is totally demolished by a tornado. How much will be paid?
3. There is a vandalism claim for $2,000. How much will be paid?
4. Weight of ice and snow causes the roof to collapse, and damages total $200,000. How much will be
paid under this policy?