Arizona Adjuster Practice Exam

Which peril is covered under the commercial property Broad Causes of Loss Form but excluded from the Basic Causes of Loss Form?

1. Fire

2. Windstorm

3. Collapse

4. Theft

The correct answer is: Collapse

The Commercial Property Broad Causes of Loss Form includes a wider range of perils compared to the Basic Causes of Loss Form. One significant peril that is covered under the Broad Causes of Loss Form but excluded from the Basic Causes of Loss Form is collapse. This includes situations where there is an actual collapse of a building or structure due to specific causes, such as hidden decay or the weight of snow. In contrast, the Basic Causes of Loss Form covers fundamental risks like fire and windstorm, which are considered more traditional perils. Theft is also typically included in both forms, although it may be subject to certain limits. The distinction lies in the additional protections provided by the Broad Causes of Loss Form, which addresses more complex and less predictable risks like collapse, making it a more comprehensive option for business property coverage.