West Virginia Property and Casualty Licensing Practice Exam

What does the broad cause of loss form cover?

1. Only basic perils

2. All perils stated in the contract

3. Perils in basic and additional perils plus named perils

4. Only fire and theft

The correct answer is: Perils in basic and additional perils plus named perils

The broad cause of loss form provides coverage for an extensive range of risks. It includes all the perils covered under the basic form—commonly including events like fire, lightning, and explosion—while also encompassing additional perils such as falling objects, weight of snow or ice, glass breakage, and accidental discharge of water. Furthermore, this form extends its coverage to named perils, which are specifically listed risks that offer protection against other incidents not included in the basic form. This comprehensive approach ensures that policyholders have a robust level of protection against a wider variety of potential losses, which can be crucial for safeguarding property and mitigating financial risk associated with various types of damage. By combining the basic and additional perils, along with named perils, the broad cause of loss form stands out as a more inclusive option compared to other forms that might only cover basic perils or specific types of damage like fire and theft.