Fina 4358 Module 4 Assignment | Verified Solution

FINA 4358 MODULE 4 ASSIGNMENT Commercial Property insurance Homework Questions Module 4 1. We have quite a markup on our pressure vessels (a $400,000 vessel sells for $750,000). What would we collect if we lose one and why can’t we collect the sales price? 2. Our main warehouse has a replacement cost of $10 million if we rebuild it out of wood as it now stands. However, I know we’d go back with a steel building at half that price. Why are we carrying the warehouse on our Property Policy at the $10 million value? 3. Our current policy seems to be “specific” as to location. Is that right? What’s the downside of it being that way and what alternative do we have? 4. I see the value of our warehouse for “contents” is $140 million. I’m assuming that about $130 million of that is inventory value but I don’t know what that means. Is it average inventory value, maximum inventory value…what? How can we better handle our inventory coverage? 5. Some of the control components for the pressure vessels manufacture by PDI are, in fact, produced in machine shops in Germany. The manufacturer has told him they are not providing insurance on these items while awaiting shipment to PDI’s US warehouse. How can these items be insured? 6. Do we have any coverage on our trade show samples and displays while at events in Europe and the Middle East? I’m told the average value of our trade show display id $3 million. 7. What is the best way we can get coverage on our dock, foundations and underground piping? 8. What is the Manufacturer’s Consequential Loss Assumption endorsement, and do we need it? 9. What is the Brands and Labels endorsement and do we need that? What kinds of businesses would be interested in that endorsement? 10. If I go back with “green” standards for repair should one of our buildings be damaged, will the Property Policy pay for that? 11. We have dome old buildings. If we do major repairs, I suspect some undamaged property will have to be torn down and the repair done according to current building codes. Will our policy pay for that increase in repair cost? 12. If we ever lose power at the warehouse, we’re going to lose some of our chemicals and drilling fluids that have to be kept at certain cooler temperatures. Would this loss be covered? 13. What tis Spoilage Coverage and do we need it? 14. DO you think we need Radioactive Contamination coverage?