146k views
0 votes
The XYZ Company has an attached balcony on the top floor of their headquarters. During a summer storm, a lightning bolt strikes the metal railing of the balcony, splitting the balcony into two. XYZ Company would like to repair the balcony, but new building codes require more expensive construction materials. What commercial property coverage pays for this extra expense?

A. Increased Construction Costs
B. Extra Expense
C. Newly Acquired Properties
D. Preservation of Property

User Anthon
by
9.2k points

1 Answer

3 votes

Final answer:

Increased Construction Costs coverage would pay for the extra expense due to new building codes after a lightning strike. Grounding a lightning rod provides a direct path for electrical current to earth, greatly reducing the risk of structural damage and fire. Without proper grounding, protection may be inadequate and risk remains higher.

Step-by-step explanation:

The commercial property coverage that pays for the extra expense incurred due to new building codes requiring more expensive construction materials is Increased Construction Costs. This type of coverage typically addresses the additional costs of construction to meet current building codes when repairing damage caused by a covered peril, such as a lightning strike.

Having a lightning rod installed on a building has its pros and cons. A lightning rod is a conductor with sharply pointed ends that helps protect the building by collecting excess charge during an electrical storm, allowing it to dissipate safely back into the air.

The key advantage of a lightning rod being grounded is that it provides a direct path for the electrical current to travel into the ground, which is the safest and most effective way to prevent damage to the structure and reduce the risk of fire or electrocution.

On the other hand, if a lightning rod is simply attached to a building without proper grounding, it may not provide adequate protection. It could result in the lightning charge traveling through other conductive paths within the building, potentially causing more damage or injury.

User Florent Georges
by
8.6k points