Property Insurance FundamentalsQuestion 198 of 531
Which group of perils is typically EXCLUDED from a standard property policy on the basic, broad, and special forms unless special endorsements or separate policies are purchased?
a.Fire, lightning, and smoke damage from a hostile fire
b.Vandalism, malicious mischief, riot, civil commotion, and damage done by striking workers during a labor disturbance at the premises
c.Earth movement (such as earthquake), flood, war, nuclear hazard, and intentional acts of the insured
d.Sprinkler leakage, windstorm, and hail causing damage to the roof, the exterior walls, and the windows of the insured building
Explanation
Standard property forms exclude earth movement (including earthquake), flood, war, nuclear hazard, intentional acts of the insured, wear and tear, and ordinance or law. Earthquake and flood normally require separate policies (such as a CEA earthquake policy or NFIP flood policy). Fire, lightning, smoke, vandalism, riot, sprinkler leakage, and windstorm are covered perils.
Law Reference: Standard exclusions: earth movement, war, nuclear, intentional actsThis topic, taught in full in the California Property & Casualty Broker-Agent guide. California Property & Casualty Broker-Agent Study Guide — 2026 Edition — PDF + EPUB, $24.99 · 14-day refund →
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Related questions on this topic
- A building is insured by two property policies covering the same interest: Policy A with a $200,000 limit and Policy B with a $300,000 limit. A covered $50,000 loss occurs. Under a pro-rata other-insurance clause, how is the loss shared?
- Under a 'contribution by equal shares' other-insurance method, how do two policies generally share a loss?
- After a fire, a city building code requires the entire damaged structure to be torn down and rebuilt to current standards even though only 40% was burned. A standard property policy WITHOUT an ordinance-or-law endorsement generally responds how to the extra demolition and code-upgrade costs?
- Which statement BEST distinguishes a loss-settlement clause that pays on an actual cash value (ACV) basis from one that pays on a replacement-cost (RC) basis?
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