Question

In the CGL coverage for Damage to Premises Rented by You, how is the coverage for fire damage different than for other perils?

Option 1: Fire damage is excluded
Option 2: Fire damage has a higher deductible
Option 3: Fire damage has a sub-limit
Option 4: Fire damage is covered with no restrictions

Answer 1

Fire damage under the Damage to Premises Rented to You portion of a CGL policy is typically covered with no restrictions, and includes a sub-limit, unlike other perils which might have various limitations.

Step-by-step explanation:

In the case of Commercial General Liability (CGL) coverage, particularly concerning the Damage to Premises Rented to You coverage, fire damage is treated differently than damage from other perils. The correct answer to how the coverage for fire damage differs is that it is covered with no restrictions, unlike other perils that may have various limitations or exclusions applied.

This specific portion of the CGL policy is commonly known as "fire legal liability coverage" and typically includes a sub-limit that caps the amount the insurance will pay for damages caused by fire to a rented property. In many policies, this coverage is provided as an exception to the exclusion that normally applies to property in the care, custody, or control of the insured, thereby offering protection specifically for fire damage without additional restrictions or increased deductibles.