Georgia Property & Casualty Practice Exam

Which of the following is commonly included in a property insurance policy?

1. Water damage

2. Earthquake

3. Wear and tear

4. Lightning

The correct answer is: Lightning

A property insurance policy is designed to provide coverage for various risks that can affect a physical asset. Among the options provided, lightning is a peril that is typically included in standard property insurance policies. This coverage protects against damage caused by lightning strikes, which can lead to fire, power surges, or direct damage to buildings and personal property. In contrast, water damage may or may not be covered depending on the specific policy and the source of water; for instance, damage from flooding usually requires separate flood insurance. Earthquakes are also generally excluded from standard property policies and typically require additional coverage options or a specialized policy for protection against that risk. Wear and tear represents a gradual decline in property condition due to use and age, which is usually not covered by property insurance, as it falls under maintenance issues rather than sudden or accidental damage. Thus, lightning is the correct choice because it falls under the protective umbrella of standard property insurance coverage, directly safeguarding the insured from immediate damages linked to that peril.