Commercial Property Insurance Module 3 In-class Exercise (Loss Adjustment) The Production Dynamics, Inc. location in Houston Texas was severely damaged during a hurricane in May of 2016. You are the adjuster assigned to settle the loss. The loss affected not only the Houston warehouse and machine shop but the windows in the downtown office space leased by PDI were blown out and wind driven rain damaged contents in that location as well. Prepare the attached Claim Summary showing the type of property damaged, the dollar amount claimed for that damage and your settlement offer. Your settlement offer must take into account the terms and conditions contained in PDI's Building and Personal Property Policy (replacement cost vs actual cash value, exclusions and sub-limits, etc) as well as the policy deductible Complete this exercise by arriving at a final settlement offer for the direct damage to property covered by the PDI policy The hurricane was characterized by severely high winds (130 mph at times), wind driven rain, and a four foot storm surge. As adjuster visiting the site and after reading the loss report turned in by PDI Proof of Loss) you note the following damages clamedbyrr 1. Buildings (structures) at the Houston location suffered damage in the amount of $4,000,000 2. Damage to general contents (Business Personal Property) are warehouse/machine shop was $3,000,000 3. Damage to "Stock at the Houston warehouse was $35,000,000 4. Damage to general contents (Business Personal Property) at the leased office space was $4,000,000 5. Damage to the dock at the Houston warehouse was $800,000 6. Damage to one pressure vessel belonging to PDI a customer that was in for repair was $3,000,000. You estimate the, given the age of the pressure vessels, a 25% depreciation adjustment is appropriate. 7. Damage to outdoor property at the warehouse (primarily fencing, light poles, one outdoor sign and radio antennas) was $400,000 8, Damage to PDI owned autos, trucks and trailers parked at the Houston warehouse was SS350,000 9. Damage to leased telephone and office equipment at the downtown office location (which PDI is required by lease to insure) was 250,000 Commercial Property Insurance Module 3 In-class Exercise (Loss Adjustment) The Production Dynamics, Inc. location in Houston Texas was severely damaged during a hurricane in May of 2016. You are the adjuster assigned to settle the loss. The loss affected not only the Houston warehouse and machine shop but the windows in the downtown office space leased by PDI were blown out and wind driven rain damaged contents in that location as well. Prepare the attached Claim Summary showing the type of property damaged, the dollar amount claimed for that damage and your settlement offer. Your settlement offer must take into account the terms and conditions contained in PDI's Building and Personal Property Policy (replacement cost vs actual cash value, exclusions and sub-limits, etc) as well as the policy deductible Complete this exercise by arriving at a final settlement offer for the direct damage to property covered by the PDI policy The hurricane was characterized by severely high winds (130 mph at times), wind driven rain, and a four foot storm surge. As adjuster visiting the site and after reading the loss report turned in by PDI Proof of Loss) you note the following damages clamedbyrr 1. Buildings (structures) at the Houston location suffered damage in the amount of $4,000,000 2. Damage to general contents (Business Personal Property) are warehouse/machine shop was $3,000,000 3. Damage to "Stock at the Houston warehouse was $35,000,000 4. Damage to general contents (Business Personal Property) at the leased office space was $4,000,000 5. Damage to the dock at the Houston warehouse was $800,000 6. Damage to one pressure vessel belonging to PDI a customer that was in for repair was $3,000,000. You estimate the, given the age of the pressure vessels, a 25% depreciation adjustment is appropriate. 7. Damage to outdoor property at the warehouse (primarily fencing, light poles, one outdoor sign and radio antennas) was $400,000 8, Damage to PDI owned autos, trucks and trailers parked at the Houston warehouse was SS350,000 9. Damage to leased telephone and office equipment at the downtown office location (which PDI is required by lease to insure) was 250,000