Question

In a commercial Property Policy with a vacancy permit endorsement for a loss to be covered the loss must occur:

A. During the policy period
B. 2 months after policy inception
C. During the permit period
D. 6 months after policy inception

Answer 1

For a loss to be covered under a commercial Property Policy with a vacancy permit endorsement, the loss must occur during the permit period specified by the endorsement. The option (A) is correct.

Step-by-step explanation:

In a commercial Property Policy with a vacancy permit endorsement, for a loss to be covered, the loss must occur during the permit period. This means that if the property is vacated and a loss happens, the insurance coverage will still apply if the loss occurs within the time frame specified by the vacancy permit.

The policy period, any specific inception period after the policy starts, or any time post-inception do not inherently guarantee coverage for losses during vacancy without the explicit terms of the vacancy permit endorsement being met. Therefore, option (A) is correct.