Question 25

The Causes of Loss-Basic Form of the Commercial Property Policy covers Lightning.

The Causes of Loss-Basic Form of the Commercial Property Policy specifically includes lightning as a covered peril. This means that damages resulting from lightning strikes are compensated under this policy.

A) Earthquake

Earthquake is not covered under the Causes of Loss-Basic Form of the Commercial Property Policy. Coverage for earthquake damage typically requires a separate endorsement or policy due to the significant risk and potential for extensive damage associated with such events.

B) Flood

Flood is also excluded from the coverage of the Causes of Loss-Basic Form of the Commercial Property Policy. Like earthquake coverage, flood insurance generally must be obtained through a separate policy or endorsement, making it distinct from the basic forms of commercial property coverage.

C) Lightning

Lightning is explicitly covered under the Causes of Loss-Basic Form of the Commercial Property Policy. This inclusion ensures that businesses can receive compensation for damages caused by lightning strikes, which can result in property damage and loss.

D) Power failure off the insured premises

Power failure occurring off the insured premises is not covered by the Causes of Loss-Basic Form of the Commercial Property Policy. This exclusion is based on the fact that the policy primarily addresses direct physical loss or damage to property and does not extend to indirect losses caused by power interruptions.

Conclusion

Lightning is the only peril among the options that is covered under the Causes of Loss-Basic Form of the Commercial Property Policy, making it the correct answer. All other options, including earthquake, flood, and power failure off the insured premises, are excluded from coverage, highlighting the importance of understanding the specifics of property insurance policies.