Canadian Accredited Insurance Broker (CAIB) One Practice Exam

Which of the following is NOT included in property insurance coverage?

1. Buildings under construction

2. Personal property

3. Natural disasters

4. Business equipment

The correct answer is: Natural disasters

Property insurance typically encompasses various forms of coverage designed to protect physical assets. Among the options listed, natural disasters are generally considered external events that are not specifically covered in many standard property insurance policies. While property insurance can include coverage for damages caused by natural disasters, such as fire or theft due to a storm, specific types of natural disasters—particularly floods and earthquakes—often require separate policies or endorsements to be included. Buildings under construction, personal property, and business equipment are all aspects that would typically fall under the broader umbrella of property insurance. Buildings under construction may have special provisions within property insurance, personal property is directly covered, and business equipment is essential for the operation of a business and is also included in property coverage. Therefore, recognizing that coverage for natural disasters is often excluded or specifically outlined differently illustrates why this is the correct answer.