Basic Appliance Store, Inc. is a retail sales and repair business that sells a variety of home appliances. They currently have a retail location at 500 Commercial Ave. Richmond, VA (building #1). The building was built in 1985 and has a current replacement cost of $2,000,000. The building also has an average inventory value of $500,000. They also keep customers property at the retail location for repair. The average value of this property at any one time is $50,000. They have office equipment valued at $150,000 based on replacement cost. They also have a second location that serves as a warehouse. This building is located at 100 River St. Richmond, VA (Building #2), was built in 1955 and has a current ACV of $1,000,000 and current replacement cost of $1,500,000. It contains the original steam boiler that is used to provide heat for the building. Inventory at this warehouse averages $750,000 but can be as low as $400,000 or as high as $1,000,000. Last year Basic Appliance had gross sales of $4,000,000. Cost of good sold was $3,000,000, operating expense including payroll was $750,000. Basic Appliance carries the following insurance: CPP with property coverage form and basic cause of loss form Building #1 Building coverage amount $1,000,000 BPP coverage amount $250,000 valuation replacement cost coinsurance 80% deductible - $500 Building #2 Building coverage amount $1,000,000 BPP coverage amount $600,000 Valuation replacement cost Coinsurance 80% Deductible $500 Review this insurance program and make recommendations for changes