Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

is this claim covered Claim 2 On February 13, 2023, a fire occurred in one of the dryer machines on the laundromat side of the

image text in transcribed

is this claim covered

Claim 2 On February 13, 2023, a fire occurred in one of the dryer machines on the laundromat side of the building. The BPP aspect of the claim was settled after the application of the declared deductible amount and requires no further examination. Al is confused by the additional settlement amount of $24,500 related to this loss and would like further review and explanation. The fire loss included a substantial loss of income due to an extended shutdown and extra expenses of which the details are cited below: - A qualified local contractor and the insurance company's claim representative determined that the business would be closed a total of 18 days. During this period, the contractor would be able to demo damaged areas of the building, complete repairs/renovation, treat the building for associated smoke damage, and clean the property to make ready for normal business operations. - The business sustained a $27,000 Business Income loss as determined by reviewing the business' normal operating income/expenses. This amounts to a $1,500 loss per day. - The business sustained an extra expense of $2,000 resulting from a delay in replacing the dryer machine units that were damaged in the fire. These units were on back order due to several factories having been shut down as result of the global COVID-19 pandemic. The stated extra expense amount relates to like kind and quality laundry units that were required to be rented until the new laundry units could be received and installed. Renting these laundry units reduced the overall business income loss. - The final settlement amounts were calculated to be: Business Income Loss: $22,500.00 Extra Expense Incurred: $2,000.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Technical Analysis Of Stock Trends

Authors: Robert D. Edwards, John Magee

5th Edition

0910944008, 978-0910944007

More Books

Students also viewed these Finance questions

Question

=+2. About the body copy (review chapter 3).

Answered: 1 week ago

Question

=+i. Does it reflect the brand's personality?

Answered: 1 week ago

Question

=+. Does it speak from the audience's point of view?

Answered: 1 week ago