Question

Under the fire policy in regards to exclusions, which statement is CORRECT?

a) Accidental fire damage resulting from the application of heat is excluded.
b) Loss, destruction or damage to goods undergoing the process involving the application of heat is excluded.
c)If the building insured has been vacant or unoccupied for the last twenty-five (25) days loss is excluded.
d) All of the above are excluded.

Answer 1

The correct statement regarding fire policy exclusions is b) Loss, destruction or damage to goods undergoing the process involving the application of heat is excluded. This identifies a common exclusion in fire insurance policies that relates to the risks of heating processes.

Step-by-step explanation:

Under the fire policy in regards to exclusions, the correct statement is: b) Loss, destruction or damage to goods undergoing the process involving the application of heat is excluded. This exclusion is common in many fire insurance policies, as the risks associated with heating processes are higher and more predictable. Therefore, coverage is generally not provided for this particular scenario. Though accidental fires are a concern, the fire policy often covers accidental fire damage unless specifically excluded. Furthermore, a building being vacant or unoccupied for an extended period may also lead to exclusions from coverage, but the specific duration can vary depending on the insurance provider and the terms of the policy.