Mustafa's Music Store is insured by Indeed Insurance Company under a Building and Personal Property Coverage Form (BPP) with Replacement Cost optional coverage for building and business personal property. The store sustains damage by a covered cause of loss. The amount of building damage is calculated as $30,000 on a replacement cost basis and $20,000 on an actual cash value (ACV) basis. The amount of business personal property damage is calculated as $10,000 on a replacement cost basis and $5.000 on an ACV basis. Mustafa does not make any repairs and waits over a year to report the claim to Indeed because he fears that his insurance premium may be increased. What is the amount that Indeed is obligated to pay for Mustafa's claim?

Answer rating: 100% (QA)

Since Mustafa has Replacement Cost coverage for both the building ... View the full answer