Final answer:
In the broad form of a commercial property policy, 'Replacement cost' is not a cause of loss but a valuation method for claims. Covered perils include 'Falling objects', 'Weight of ice, sleet, or snow', and 'Water damage'. Balancing premiums is essential for the insurance company's sustainability.
Step-by-step explanation:
The question concerns the additional causes of loss, also known as perils, that are typically included in the broad form of a commercial property policy. Three of the given options are indeed perils that would be covered under such a policy: 1) Falling objects, 2) Weight of ice, sleet, or snow, and 3) Water damage. However, 4) Replacement cost is not a cause of loss; rather, it refers to how a loss will be valued in the event of a claim. Replacement cost coverage is a policy feature that determines the amount the insurance company will pay to replace damaged property without deduction for depreciation.
Insurance companies are challenged with balancing premiums to cover losses from high-risk policyholders without deterring low or medium-risk individuals from obtaining insurance. A fundamental law of insurance requires that the average person’s payments into insurance over time must cover the average person’s claims, the costs of running the company, and allow for the company's profits.