Which situation is NOT covered by the basic Causes of Loss form in a commercial property policy?

Which situation is NOT covered by the basic Causes of Loss form in a commercial property policy?

• A. Storm damage to a roof
• B. Water damage from flooding
• C. Theft of property
• D. Fire damage to equipment

Answer: (B)

The situation of water damage from flooding is not covered by the basic Causes of Loss form in a commercial property policy. The basic Causes of Loss form typically covers perils such as fire, lightning, explosion, windstorm, hail, and theft, among others. However, flooding is generally excluded from standard policy coverage and often requires a separate flood insurance policy for protection. In most scenarios, flood damage arises from surface water, storm surges, and overflow of water bodies, which are not included in the standard coverage. On the other hand, storm damage to a roof, theft of property, and fire damage to equipment are all typically covered under the basic Causes of Loss form, as they fall under perils explicitly listed in that coverage. This distinction is crucial for policyholders to understand, as it can impact their risk management and insurance needs.

The situation of water damage from flooding is not covered by the basic Causes of Loss form in a commercial property policy. The basic Causes of Loss form typically covers perils such as fire, lightning, explosion, windstorm, hail, and theft, among others. However, flooding is generally excluded from standard policy coverage and often requires a separate flood insurance policy for protection.

In most scenarios, flood damage arises from surface water, storm surges, and overflow of water bodies, which are not included in the standard coverage. On the other hand, storm damage to a roof, theft of property, and fire damage to equipment are all typically covered under the basic Causes of Loss form, as they fall under perils explicitly listed in that coverage. This distinction is crucial for policyholders to understand, as it can impact their risk management and insurance needs.