Canadian Accredited Insurance Broker (CAIB) Two Practice Exam

What sort of damage is specifically excluded in the Damage to Building by Burglary or Robbery policy?

1. Damage to roofing materials

2. Damage to windows and glass features

3. Damage due to water leaks

4. Loss of income due to theft

The correct answer is: Damage to windows and glass features

The Damage to Building by Burglary or Robbery policy primarily focuses on covering damages associated with forced entry and theft. This type of policy typically includes various types of physical damage to the structure resulting directly from an act of burglary or robbery, but certain damages can be specifically excluded due to the nature of the coverage. Damage to windows and glass features is often explicitly covered, as these elements can be directly impacted during a burglary attempt. However, such damages are typically not excluded under this type of policy. Instead, the policy specifically outlines exclusions for more indirect damages or those that arise from other causes that fall outside the scope of burglary. In this context, damage to roofing materials, damages due to water leaks, and loss of income due to theft often represent broader situations not specifically addressed by this type of insurance policy. Water leaks, for example, could result from various non-burglary-related causes and thus would not be covered. Similarly, loss of income due to theft pertains more to business interruption and financial repercussions rather than the physical damage to the premises. Therefore, the focus on physical damage within the policy makes it clearer that while superficial or structural elements may be included, losses related to income due to theft or indirect damages like water leaks are likely excluded