One of the Additional Coverages Under the Building and Personal

question 29

Multiple Choice

One of the additional coverages under the building and personal property coverage form is "increased cost of construction." The coverage is payable if

• A)a skilled artisan is needed to duplicate the construction of the damaged property.
• B)a labor strike or materials shortage increases construction costs.
• C)an ordinance or building code increases the cost of construction.
• D)the materials necessary to rebuild the damaged structure are more expensive than ordinary building materials.

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Definitions:

Interest Income

Earnings from investments in savings accounts, bonds, CDs, or other interest-bearing accounts.

Exemptions

Exemptions are deductions allowed by the government on taxable income, reducing the overall amount of taxes owed by individuals or entities.

1040 Tax Form

The standard Internal Revenue Service (IRS) form that individuals use to file their annual income tax returns.

Real Estate Taxes

Taxes imposed on properties by local governments, calculated based on the assessed value of the property.