Question

1. On a depreciating asset most likely the insurance premium would be higher for

A	A replacement cost policy

B	A value based policy

C	This make no difference

D	High deductible policy

2. Named perils in an insurance policy

A	State the exact things that are covered

B	State broad situations that are covered but are not specific

C	Are the same as exclusions

D	Are not permitted in construction

3. All insurance companies are the same and there is no need to shop around for insurances policies for construction project work.

A

True

B

False

Answer 1

1) A) replacement cost policy

The higher the deductible, the lower the premium is on the policy. A replacement cost will repair or replace the insured property at its present cost without depreciation. Naturally, replacement cost will have a higher premium than cash value.

2) Answer is A) State the exact things that are covered

A named perils insurance contract only covers the perils specifically stipulated in the policy. These provide coverage only for loss caused by the perils specifically listed as covered.

3) False

There are so many companies offering insurances policies for construction project work. And each of them have a different set of features and benefits .some plans cost less and has conflicting clauses. They can differ in the level of customer service and in the variety of insurance products they sell. Each one of them has different underwriting guidelines.