Final answer:
The three types of property that must be directly attacked for coverage to respond are building structure, personal property, and business inventory. These categories include buildings, owned items that are not part of a building, and unsold goods in storage. Insurance covers when these are jeopardized, maintaining financial stability.
Step-by-step explanation:
The three types of property that must be directly attacked for coverage to respond are:
- Building structure: This category includes diverse types of constructions such as homes, office buildings, shopping malls, and factories.
- Personal property: This encompasses items owned by the individual or the business that are not affixed to the building, including long-lasting durable goods like cars and refrigerators, as well as short-lived nondurable goods like food and clothing.
- Business inventory: Refers to the goods a business has produced but not yet sold; these items are stored in warehouses or on shelves. Inventory levels fluctuate based on consumer demand and can decrease when business is better than expected or increase if it is worse than expected.
Insurance coverage typically reacts when one of these property types is compromised through damage or loss, ensuring that the financial stability of a business can be maintained.