Arizona Adjuster Practice Exam

Which cause of loss would typically be covered by standard property insurance?

1. Earthquake

2. Theft

3. Tornado

4. Wear and tear

The correct answer is: Tornado

Standard property insurance typically covers losses from specific perils, which are directly outlined in the policy. Tornadoes are considered a natural disaster and are commonly included in the coverage provided by standard property policies. This means that if a tornado causes damage to insured property, the policy would generally respond to cover those losses, assuming other policy conditions are met. The coverage for tornadoes stems from their classification as a windstorm. Most standard property insurance policies have provisions for wind-related perils unless explicitly excluded. Under these circumstances, damage resulting from tornadoes provides clear support for the assertion that standard property insurance covers such events. In contrast, other causes of loss listed, like earthquakes, are typically excluded from standard policies and usually require additional coverage options or endorsements. Theft is generally covered, but specific conditions and limits may apply depending on the policy. Wear and tear is also not considered a covered peril, as standard property insurance is designed to cover sudden and accidental losses rather than gradual declines in the condition of property.