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Donna owns a commercial building that has a small retail shop, three offices, and a small warehouse. ...

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Donna owns a commercial building that has a small retail shop, three offices, and a small warehouse. ...

Donna owns a commercial building that has a small retail shop, three offices, and a small warehouse. Each unit is rented out to a different company. She has taken out a standard fire insurance policy for the appraised value of the building. On July 1st, the building and its contents are destroyed by fire. The cause of the fire was never determined. Which of the following is true?
a. The policy will pay for the damages to the building and all personal property contained within.
b. The policy will pay for the building and any furnishings owned by Donna up to the face value of the policy.
c. The policy will pay for damaged inventory in the warehouse.
d. The policy will pay for replacement costs of the building.
e. The policy will pay for the damaged inventory and lost profits of each tenant.

Textbook

The Law and Business Administration in Canada

Edition: 14^th

Authors: Smyth, Soberman, Easson, McGill

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bigcaat Author

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7 years ago

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Good timing, thanks!

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