This is a hypo with a few twist and turns.

The insured is a large granite and marble wholesale location in Houston, Texas in an industrial park. The building has a railroad siding for the park occupants. The insureds building is a stand alone building in the middle of the park. The building is 80 foot long and 48 feet deep. with 20 foot overhead doors.The warehouse space is in the rear.

The policy is a CP 10 30 Bld $500,000.  Contents $700,000.  a $5,000. Ded.  both have a 90% co-insurance clause

Facts: A gondola car on the siding was moved in at 17.42  it was spotted by the mgr. @ 17.50. The  fire alam was set off by the sprinker system at 19.20. The fire destroyed the gondala car, the marble stock shipment of $200,000. the building and contents and a 30 Ton Grove Cherry Pick rented from Herts to unload the car.

You task is to investigate the facts and report to the carrier what the loss reserves should be on this loss. Do not start you damage estimate, just sort out the coverage and covered property, by the way the C & O of the fire was a "hot journal box" on the building side of the gondola car.

New information for the adjuster as this is now a full assignment.  The policy also has business income & extra expense of $680,000. with the same co-insuance of 90%.  The building is a tilt wall with metal joist, metal deck, light weight concrete, 3/4 insulation, mod bit. roof.Office space in front is 12 feet deep with a glass store front windows 10 feet high. drop ceilings of 9 feet,  a/c 20 ton roof mounted, return air ducted to unit in 4 areas.

Destoryed OH/ door, 20x30 roof deck and joist, black soot on walls, ceilings, floors.

Other about 25% of the stock in boxes destroyed.  All the marble, granite, needs cleaning, all office furniture in offices totaled by water from sprinkler. All the stock in the Gondola car and the cherry picker worth $225,000 ACV.

Now wade on in no one will be put down. We all promise....This is the type of commercial claim( with wrtinkles) that  has occurred many times. call me or email this week end if you do not want to post. This is  the type losses you will do in a good commercial adjusters class on paper.

 ** the car had 600 pcs of stock, or about one months inventory and the insured keeps a 2 month supply in the warehouse and $300,000. of boxed stock on hand.

The office space is 12x12x9, 8 foot door, desk, credenza, chair, computer, printer x 5 entrance-rec 1  mail room/kitchen 1

OK Trader, you already have put another twist & turn on this one.  It started out as a fire loss, now it's a typical hurricane loss.  Oh, well, no matter....but give us one more little piece of info if you would.  What is a "hot journal box" on the gondola?  And what specifically do you mean when you say gondola?  That can mean different things to different folks.

This is a good scenario that I'll return to after I have access to my policy forms.  On a little trip right now away from my usual resource drawer.

You  need the following CP forms to work this problem loss: IL 00 17 11 98, CP 00 10 04 02, CP 10 30 04 02. about  25 pages in all.

This question has many land mines : 1. RR side track agreement 2. Rental equip. 3 Waiver of subrogation 4 indemnity for RR property.5 co-insurance on contents coverage.

1. This is a very old agreement, the insured can not sue the RR for damage to the insureds property, EVEN though the fire was caused by the RR property/car/cargo/engine.

2. The insured must insure the rental equip. The lease agreement.

3 & 4 covered in No. 1

5. Big co-insurance penalty depends on the covered property which this policy must address covered in 1 & 2.

These clues should give you a starting point.

Why would you not be entitled to wade in. You comments are welcome, regardless of how many years you have in this business.

It been a long time since this was posted ?

Read this on a "Form" for a catastrophe firm the other day. I know the answer. A box ask for the "Loss Payee" who do you put in this box?