It also furnished water to all of the hydrants within 1000 feet in all directions from the structure. As the sprinkler system has been rendered inoperative and the fire department's effectiveness severely curtailed, the complex sustains a complete loss. It would be a year before the complex can be restored. A time element claim is presented to Shopping Center's insurer. The claim was denied because no time element coverage had been included in their insurance program.
Some firms use what is called interim financing while construction is being done.
This financing is short term for the length of time it is estimated that it will take to complete construction and have it occupied. The loss would delay the opening of the complex. Shopping Center, Inc.'s interim financing would not extend to the revised opening date. Because Shopping Center, Inc. could not find another source of money with which to immediately pay off the interim financing loan, they were forced into bankruptcy. This scenario could have been avoided.