ipton Enterprises (Tipton) is a commercial industry supply company and is based in Walla Walla, WA and insures its primary warehouse under a Building and Personal Property Coverage Form (BPP) with a Causes of Loss—Special Form and a Replacement Cost valuation. There is a $40 million coverage limit on the building, with a 90 percent coinsurance clause and $50,000 deductible. The building was struck by lightning and the resulting fire caused substantial damage to the building. The cost to repair the damaged portion of the building with materials of like kind and quality was $5,000,000. At the time of the loss, the replacement cost value of the building was determined to be $44 million. How much would the property insurer pay for this fire damage claim to contribute toward the repair of Tipton's building? (3pts.)

Answer rating: 100% (QA)

Replacement cost value of the building is 44 million Coverage limit on the build... View the full answer