Question 36 • FL-2102371-Personal Finance and Money Management
Read the scenario.Sarah owns an apartment building that she rents out to tenants. She let her insurance policy lapse due to financial difficulties. A severe storm caused significant damage to the building, and one tenant slipped and fell on a wet floor in the hallway, sustaining injuries.What consequences could Sarah face?
Answer
A
requirement to repaint the entire building after repairs
B
legal fees from potential lawsuits filed by injured tenants
C
necessity to provide tenants with complimentary gym memberships
D
mandatory installation of a new roofing style to meet building codes
Explanation
The tenant was injured after slipping on a wet hallway floor, so Sarah could face a lawsuit over whether she failed to keep the common area safe. Because her insurance policy had lapsed, she may have to pay legal fees herself rather than rely on insurance coverage. The other choices describe requirements or benefits not indicated by the scenario.
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