Difficulty: Hard

Average Score: 41%

If a building is vacant for more than 60 consecutive days, which of the following two perils are broad peril exclusions?

Rationale

Damage by vandalism and accidental discharge of water are broad peril exclusions.

In insurance policies, broad peril exclusions specify certain risks that are not covered under specific circumstances, such as when a property is vacant for an extended period. In this case, both vandalism and accidental discharge of water are excluded when a building remains vacant for more than 60 consecutive days.

A (falling objects and accidental discharge of water or steam) YOUR ANSWER

Falling objects are generally covered under broad peril policies, and accidental discharge of water or steam is not typically excluded. Therefore, this option does not accurately represent the perils that are excluded due to a building's vacancy.

B (damage by vandalism and accidental discharge of water) CORRECT

Both vandalism and accidental discharge of water are indeed excluded from coverage when a property has been vacant for more than 60 days. This makes this option the correct answer, as it identifies the perils that insurers commonly exclude in such circumstances.

C (weight of ice, snow, or sleet and freezing of plumbing) YOUR ANSWER

The weight of ice, snow, or sleet is usually covered under standard policies and is not excluded due to vacancy, while freezing of plumbing is typically addressed under different terms. Thus, this choice does not reflect the correct exclusions related to vacancy.

D (freezing of plumbing and falling objects) YOUR ANSWER

Freezing of plumbing can often be a covered peril, and falling objects are generally not excluded in the context of vacancy. Therefore, this choice does not align with the correct answer regarding broad peril exclusions.

Conclusion

Understanding broad peril exclusions is crucial for property owners, particularly concerning policies that apply when buildings are vacant for extended periods. Damage by vandalism and accidental discharge of water are explicitly excluded under these conditions, leading to potential coverage gaps. Recognizing these exclusions helps property owners take necessary precautions to mitigate risks during vacancy.

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