A Building and Personal Property Coverage Form with the Causes of Loss - Special Form covers a building and its contents for a blanket limit of $2.5 million on an agreed value basis. Attached to the policy is the ISO Flood Coverage Endorsement, subject to a limit of $1 million and a waiver of the policy provision requiring primary flood insurance from the NFIP. The insured property suffered a covered flood loss of $2,000,000. As a consequence of the flooding, a natural gas explosion in the building's basement resulted in a fire that destroyed the building and its contents. The combined amount of the flood loss and ensuing explosion and fire loss was $3,000,000. Disregarding policy deductibles, how much of this loss will the insured be able to recover from the insured?
In accordance with the Ensuing Loss provision, the insureer will be obligated to pay only the policy limit of $2,500,000.