Question

A commercial property special form covers property in transit up to

1) Actual cash value
2) $500
3) Full replacement cost
4) $5,000

Answer 1

The commercial property special form typically covers property in transit for the full replacement cost.

Step-by-step explanation:

Commercial property special form insurance generally extends coverage for property in transit at its full replacement cost. This means that if the property is damaged, lost, or stolen while being transported, the policy will provide reimbursement or replacement for the item's value without factoring in depreciation. This coverage is particularly valuable for businesses transporting high-value items, as it ensures they can recover the full cost of replacing the lost or damaged property. Unlike coverage for actual cash value (which considers depreciation) or fixed monetary limits like $500 or $5,000, the full replacement cost coverage offers comprehensive protection, aligning with the actual expense of replacing the property at its current market value.

Correct Answer: 3) Full replacement cost