Question

A fire burns down Jenny's Hardware, leaving virtually nothing salvageable. Which of the following items would NOT be covered under Coverage A of the Building and Personal Property Coverage Form in her commercial property policy?

Option 1: Inventory of hardware and tools.
Option 2: Exterior signs identifying the business.
Option 3: Office furniture and equipment.
Option 4: Cash and valuable papers.

Answer 1

Cash and valuable papers, stated in Option 4, would typically not be covered under Coverage A of the Building and Personal Property Coverage Form in a commercial property policy. Coverage A generally protects the physical components of the building and permanently installed fixtures, not cash or valuable documents.

Step-by-step explanation:

The question involves determining which item would NOT be covered under Coverage A of a Building and Personal Property Coverage Form in a commercial property policy. Among the options provided, Option 4: Cash and valuable papers would not typically be covered under Coverage A.

Coverage A generally includes the structure of the building itself and its fixtures as well as permanently installed machinery and equipment. The inventory of a business, such as hardware and tools, represented in Option 1, and office furniture and equipment, indicated in Option 3, would usually be covered under this coverage part.

While exterior signs, Option 2, may or may not be covered depending on particular policy conditions, cash and valuable papers are not usually included in this coverage part, making Option 4 the correct answer. These items are typically insured under a different coverage form or policy endorsement due to their nature.