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:

Acres

A unit of land area used in the imperial and US customary systems, equivalent to 4,840 square yards or 43,560 square feet.

Rent

Payment made to use or occupy land, a building, machinery, or other assets for a specified period under a lease agreement.

MRP

An abbreviation for Marginal Revenue Product, which is the additional revenue generated from employing one more unit of a factor, such as labor or capital.

Workers

Individuals engaged in a profession or activity, especially one involving manual or physical labor, contributing to the production of goods and services in an economy.