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:

Marginal Utility

The change in total utility generated by consuming one additional unit of a good or service.

Uncertain Income

Income that is not guaranteed or predictable, often varying significantly over time or depending on specific conditions.

Constant

A value that does not change and remains steady within a specified context.

Expected Value

The anticipated value for an investment or gamble, calculated as the sum of all possible outcomes weighted by their associated probabilities.