A unique,attractive feature of a BOP is that both real and personal property are valued on
A)an appraised cash value basis.
B)a market-adjusted depreciated value basis.
C)a replacement-cost basis.
D)a proximal-to-value basis.

Question

Quizplus · Accepted Answer

A Business Owners Policy (BOP) values both real and personal property on a replacement-cost basis. This means that in the event of a covered loss, the policy will pay for the cost to replace or repair the damaged property without taking depreciation into account. This encourages policyholders to maintain their property at its highest value so they can be compensated for the full cost of replacing the property in the event of a loss.

A Unique,attractive Feature of a BOP Is That Both Real