Property Insurance FundamentalsQuestion 180 of 215
Which list correctly identifies perils typically found on a basic-form property policy?
a.Flood, earthquake, war, nuclear hazard, intentional acts
b.Fire, lightning, windstorm or hail, explosion, smoke, aircraft or vehicles, riot or civil commotion, vandalism, sprinkler leakage
c.Wear and tear, mechanical breakdown, inherent vice, settling
d.Loss of use, ordinance or law, governmental seizure
Explanation
The traditional basic-form perils include fire, lightning, windstorm or hail, explosion, smoke, aircraft or vehicles, riot or civil commotion, vandalism, and sprinkler leakage (with sinkhole and volcanic action sometimes added). Flood, earthquake, war, and nuclear hazard are not basic-form perils; they are common exclusions. Wear, tear, and inherent vice are also excluded.
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