West Virginia Property and Casualty Licensing Practice Exam

Which of the following is not considered a covered peril under the standard fire policy?

1. Lightning

2. Fire

3. Actions of war

4. Removal from the premises of property endangered by a covered peril

The correct answer is: Actions of war

The correct response is based on the understanding of what constitutes covered perils under a standard fire policy. A standard fire policy typically covers specific risks associated with fire damage, including fire itself and causes that can lead to fire-related claims. Lightning is indeed covered because it can cause a fire, and removal of property endangered by a covered peril is also included, as it's essential for mitigating loss. Therefore, both of these options align with the intent of the policy to protect property from fire and related incidents. On the other hand, actions of war are specifically excluded from standard fire policies and most property insurance altogether because such events are beyond the control of the insurer and present a higher level of risk that insurance companies do not wish to underwrite. Thus, actions of war are not considered a covered peril, making this option the correct answer. Understanding the scope of coverage within a standard fire policy allows policyholders to better assess their risks and the protections they may need.