Property and Casualty Insurance Practice Exam

Which of the following perils is covered under the Basic Form of Commercial Property Insurance?

1. Snow damage

2. Vandalism

3. Water damage

4. Falling objects

The correct answer is: Vandalism

The Basic Form of Commercial Property Insurance typically covers a set list of named perils. Vandalism is included among these covered perils because it pertains directly to the malicious destruction of property, which is a significant risk for businesses. This coverage can help protect business owners from financial losses resulting from intentional acts that damage their physical assets. In contrast, snow damage, while it may lead to property damage, is usually considered an excluded peril unless specified in an additional endorsement. Water damage, depending on its source (such as flooding), often falls outside standard coverage unless specifically included in the policy. Falling objects can also be excluded under certain circumstances and are not universally protected by the Basic Form, making vandalism a more secure answer within this context.