Traditionally, commercial property insurance has valued all property loss at
A) the depreciated value of the damaged or lost property.
B) the undepreciated value of the damaged or lost property.
C) the actual cash value of the damaged or lost property.
D) the purchase value of the damaged or lost property.

Question

Quizplus · Accepted Answer

Commercial property insurance has traditionally valued property loss at the actual cash value of the damaged or lost property, which takes into account the depreciation of the property over time. This means that the insurance payout will be based on the current market value of the property at the time of the loss, rather than the original purchase price or replacement cost.

Traditionally, Commercial Property Insurance Has Valued All Property Loss at