Canadian Accredited Insurance Broker (CAIB) Two Practice Exam

Which of the following is a key exclusion in the Damage to Building by Burglary or Robbery policy?

1. Damage to personal belongings

2. Damage to glass or damage to lettering

3. Losses due to employee theft

4. Theft from unattended vehicles

The correct answer is: Damage to glass or damage to lettering

The key exclusion in the Damage to Building by Burglary or Robbery policy is damage to glass or damage to lettering. This is an important provision as such policies are typically designed to cover structural damage incurred during a burglary or robbery, while specific items like glass and lettering are often excluded because they can be subject to separate policies or coverage options. Damage to glass may be distinct in its nature and typically falls under different coverage terms, given its susceptibility to various other forms of damage unrelated to theft. Similarly, lettering is generally not considered a structural component of a building and is also treated separately in insurance coverage. By designating these areas as exclusions, the policy is clarified to focus on protecting the core structure of the building itself rather than incidental or external features that could more properly align with other types of coverage. Understanding these exclusions is crucial for insurance professionals and policyholders alike, as it highlights the need to assess additional coverage options to ensure comprehensive protection for all aspects of a property, including glass and lettering.