Question

A policyholder has an equipment breakdown policy with a $200,000 limit, If a boiler expolision causes $100,000 damages to the boiler itself, damage to the insured's building, and $30,000 of expediting expenses, how much will the insured collect under the policy?A. $130,000

- B. $150,000
- C. $170,000
- D. $200,000

Answer 1

The insured will collect a total of $130,000 under the policy.

Step-by-step explanation:

To calculate how much the insured will collect under the policy, we need to add up the damages to the boiler, the damage to the insured's building, and the expediting expenses. The damages to the boiler are $100,000, the damage to the building is not given, and the expediting expenses are $30,000. Therefore, the insured will collect a total of $130,000 under the policy.