Question

A parking garage owner completed major renovations to a parking garage just prior to selling it to another company. Three months later, overhead concrete fell on to cars in the second floor level. Under the garage coverage policy conditions, which of the following is true?

A. The new owner is responsible for the damage
B. The previous owner is responsible for the damage
C. The insurance does not cover this type of loss
D. Both owners share the responsibility

Answer 1

Responsibility for damage due to overhead concrete falling in a parking garage usually falls to the current owner, subject to the terms of their insurance policy. The garage coverage policy should be reviewed for coverage details and exclusions in such events.The correct answer is option A

Step-by-step explanation:

When it comes to the scenario where overhead concrete falls onto cars in a parking garage, the responsibility for the damage typically lies with the current owner of the property. However, the specific terms of the garage coverage policy are crucial in determining liability. It is not uncommon for an insurance policy to cover various types of property damage, but each policy has its exclusions and conditions.

If the policy was in effect at the time of the incident and provided coverage for structural failures, the new owner would typically be responsible for filing a claim. It's important to review the insurance policy's terms to understand the extent of coverage and any exclusions that might apply. This scenario emphasizes the importance of thorough due diligence and the transfer of appropriate insurance coverage when acquiring a property.The correct answer is option A