Your clients insure their condominium unit under a Condominium Unit Owners Comprehensive policy, subject to $1,000 deductible, with no extensions. The building suffers severe damage by earthquake, which is covered by the Condominium Corporation's insurance, but there is insufficient insurance to cover the loss in full. The Condominium Corporation assesses each unit owner $5,000 to cover the shortfall in its policy. 25% of the unit owners are uninsured for Loss Assessments. How much of the assessment will your clients policy pay? $5,000.00 $4,000.00 75% of $5,000. Nothing.

Your clients insure their condominium unit under a Condominium Unit Owners Comprehensive policy, subject to $1,000 deductible, with no extensions. The building suffers severe damage by earthquake, which is covered by the Condominium Corporation's insurance, but there is insufficient insurance to cover the loss in full. The Condominium Corporation assesses each unit owner $5,000 to cover the shortfall in its policy. 25% of the unit owners are uninsured for Loss Assessments. How much of the assessment will your clients policy pay? $5,000.00 $4,000.00 75% of $5,000. Nothing.

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter10: Managing Property And Liability Risk

Section: Chapter Questions

Problem 2FPC

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