Question

Helen's business is growing rapidly, so she decided to add an annex onto her office and hire another worker. A storm blows down most of the annex structure while it is under construction, forcing Helen to restart from scratch. Assuming she maintains the 80% coinsurance requirement on her commercial policy, which coverage extension could help Helen rebuild?

A. Outdoor Property
B. Reasonable Repairs
C. Property Off-Premise
D. Newly Acquired Property

Answer 1

The Newly Acquired Property coverage extension helps cover buildings under construction, which applies to Helen's annex damaged by the storm, assuming she meets her policy's 80% coinsurance requirement. The correct answer is option D. Newly Acquired Property

Step-by-step explanation:

Helen's business is experiencing rapid growth, and to accommodate this, she decided to construct an annex to her office. However, a storm caused significant damage to the annex while it was under construction. To address the financial loss and rebuild the annex, Helen must look for coverage in her commercial policy which likely contains several extensions.

Given that she complies with the 80% coinsurance requirement, the Newly Acquired Property coverage extension would be most applicable in her case. This extension typically provides coverage for new constructions and structures that are in the process of being built, as long as they are reported within a certain period, typically 30 days.

Other extensions like Outdoor Property, Reasonable Repairs, and Property Off-Premise would not apply in this situation as they cover different types of property or circumstances.