Question

An insured has an unendorsed BPP providing $500,000 in coverage on it building on a RC basis, with a $5,000 deductible. The insured suffered a covered loss of $100,000 to the building. The debris removal costs were $40,000. The jurisdiction where the building is located does not have any regulations regarding replacement or repair; however, the insured is subject to fire department charges of $1,250. How much coverage will be provided under the addition coverages?

Answer 1

Under the additional coverages, the total coverage provided will be $41,250.

Step-by-step explanation:

Under the additional coverages of the insured's unendorsed BPP policy, the following coverages will be provided:

1. Debris Removal: The policy will cover the debris removal costs of $40,000.
2. Fire Department Charges: The policy will cover the fire department charges of $1,250.

Therefore, the total coverage provided under the additional coverages will be $41,250.