FINA 4358 MODULE 5 ASSIGNMENT QUESTIOND AND ANSWERS

FINA 4358 MODULE 5 ASSIGNMENT QUESTIOND AND ANSWERS Commercial Property Homework Questions Module 5 1. With respect to PDI’s condominium in New York City, how can PDI determine where the dividing line lies between a condominium association’s interests and PDI’s interests? Using the Condominium Association Agreement-Pertinent documents 2. I’m getting some confusing information from our property manager in New York. It seems that the Office Park Condominium Association (OPCA) in New York City is insured under the Condominium Association Coverage Form. PDI has been a unit owner at the OPCA complex for five years and is insured under the Condominium Commercial Unit-Owners Coverage Form. The condominium association agreement follows the single-entity concept with regard to property ownership and insurance requirements. PDI recently suffered a fire loss inside its premises. Indicate which policy— OPCA’s or PDI’s—would cover each of the following items that were damaged by the fire. Justify each of your answers. a. Business personal property owned by PDI. PDI b. Interior walls that were in the unit as sold to PDI. OPCA c. A water heater that was in the unit as sold to PDI. OPCA d. Upgraded marble counter tops, kitchen appliances, expensive wood paneling, marble and hardwood flooring, upgraded light fixtures. PDI e. Money and securities owned by PDI. PDI 3. PDI is considering the purchase of a builders risk policy to cover the construction of a new building at the Houston warehouse. What are four unique builders risk exposures that differ from the exposures of completed buildings? BPP coverage, Inland marine policies, HPR & Independent Forms, Delay in start-up 4. In addition to PDI, what separate interests (parties) can usually be insured under a builder’s risk policy? Subcontractors 5. As you know we have an office building and warehouse under construction in the San Francisco area and it is insured by PDI under the ISO Builders Risk Coverage Form to CPHWQ_ which the Causes of Loss—Special Form is attached. Indicate whether each of the following losses would be covered under the policy. If a loss is not covered, explain why. a. Building supplies owned by PDI and worth $5,000 were destroyed by vehicle collision while being conveyed on a supplier’s truck to the insured location. Y b. A hailstorm destroyed several trees and plants that the landscaping contractor had just planted at the insured location. Y, L