Florida Insurance Licensing Practice Exam

Firemen caused water damage to a property by spraying water to put out a fire. If the property insurance policy listed fire as the only named peril, is the water damage covered?

1. Yes, because it is a different type of damage

2. No, because water is not listed as a peril

3. Yes, because of the concept of proximate cause

4. No, unless water damage is specifically added

The correct answer is: Yes, because of the concept of proximate cause

Yes, the water damage would be covered due to the concept of proximate cause. This principle means that if one event directly leads to another event, they are considered part of the same cause for insurance purposes. In this scenario, the fire caused the firemen to spray water, which in turn caused the water damage. Therefore, the water damage would be covered under the listed peril of fire. Option B is incorrect because water is not listed as a named peril, but it can still be covered if it is caused by a listed peril. Option D is incorrect because the scenario does not mention the option of adding specific coverage for water damage. Option A is incorrect because it is not a different type of damage, but rather a result of the listed peril of fire.