Exam DISC-IA Practice Question 612
Study guide: Exam DISC-IA
A store is insured under the BPP with the causes of loss special form. During a rainstorm with no damaging wind, water enters through roof flashing that has deteriorated over many years and ruins $12,000 of ceiling tiles and stock. Why is the loss not covered?
- A) Wear and tear is excluded, and interior rain damage is limited without prior roof damage
- B) Rain is a named peril only under the broad form, and the store chose the special form
- C) The water exclusion removes all damage by water, whatever its source
- D) The loss is less than the coinsurance requirement, so the coinsurance condition removes it
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