If a policyholder has an equipment breakdown policy with a $200,000 limit and suffers $100,000 damage to the boiler, $50,000 damage to the building, and $30,000 of expediting expenses, how much will they collect?

In determining how much the policyholder will collect under the equipment breakdown policy, it's essential to understand how the claims are assessed against the policy limit.

The policyholder has a limit of $200,000, and the total damages incurred are broken down into specific categories: $100,000 for damage to the boiler, $50,000 for damage to the building, and $30,000 for expediting expenses. When these amounts are summed up, the total loss comes to $180,000 ($100,000 + $50,000 + $30,000).

Since the total loss of $180,000 is under the policy limit of $200,000, the policyholder will be compensated for the full extent of their loss. However, it is essential to pay attention to the terms of the policy, which may specify that certain expenses, like the expediting costs, could have limitations or may not be fully covered.

In this case, the coverage allows for the total amount of covered losses to be paid out, leading to the conclusion that the policyholder would receive $180,000.

Yet, if a possibility arises where certain adjustments or deductibles are factored in, it might lead to a different outcome. Therefore, option B