West Virginia Property and Casualty Licensing Practice Exam

Which peril would you expect to see in a "broad perils" policy?

1. Explosion

2. Earthquake

3. Flood

4. Personal injury

The correct answer is: Explosion

In a "broad perils" policy, you would expect to see an explosion listed as a covered peril. Broad peril policies typically cover a wider range of risks than basic policies, including most of the perils found in basic forms along with additional risks. Specifically, these policies might encompass various types of accidental damage and loss, and explosion is a common peril often included due to its potential for causing substantial damage to property. The other perils listed typically do not fall under broad perils coverage. Earthquakes are usually excluded from standard property insurance policies and require separate coverage or an endorsement due to their high-cost implications. Floods are similarly not covered unless a specific flood insurance policy is purchased since they result from specific environmental factors. Personal injury, while often addressed in liability policies, is related to bodily injury and does not pertain to property perils in the context of a property insurance policy. Thus, explosion aligns well with the types of perils covered, making it the correct answer for what you could expect in a "broad perils" policy.