Canadian Accredited Insurance Broker (CAIB) Two Practice Exam

What coverage is provided by the safe burglary rider regarding the unlawful taking of property?

1. The unlawful taking of insured property from a locked vault or safe

2. Theft from an open window

3. Loss of property due to natural disasters

4. Damage caused by vandalism

The correct answer is: The unlawful taking of insured property from a locked vault or safe

The safe burglary rider specifically provides coverage for the unlawful taking of insured property from a locked vault or safe. This type of rider is designed to protect against theft that occurs when a burglar accesses these secure storage areas through force or unlawfully breaching them. This coverage recognizes the higher level of security that a vault or safe represents and addresses the unique risks associated with it. The other options do not pertain to the scope of coverage provided by the safe burglary rider. For example, theft from an open window is typically addressed under standard theft coverage rather than safe burglary coverage. Loss of property due to natural disasters is generally covered under property insurance but not specifically by this rider, which focuses on theft rather than damage from natural events. Damage caused by vandalism is also a different type of incident and is typically covered under a vandalism policy rather than associated with the safe burglary rider's specific focus on unlawful taking from secured locations.