Arizona Adjuster Practice Exam

Which of the following is an example of a peril?

1. Earthquake damage

2. Fire that destroys or damages property

3. Wind that causes property damage

4. Breakage of glass

The correct answer is: Fire that destroys or damages property

A peril refers to a specific risk or cause of loss that can result in damage to property. In this context, "fire that destroys or damages property" is a clear example of a peril. It denotes the actual event (the fire) that leads to destruction or damage, which is central to understanding insurance terminology and coverage. Fire is universally recognized as a hazardous event that can lead to significant property loss, making it a classic example of a peril in insurance policies. Insurers often provide coverage specifically for losses caused by fire, demonstrating its importance in the realm of insurable risks. While earthquake damage, wind damage, and breakage of glass are also incidents that can result in loss, they can be viewed as specific outcomes of broader perils (earthquake, windstorm, or accidental breakage, respectively). However, in terms of the question, the focus is on identifying a specific risk (fire) that directly leads to damage.