Property and Casualty Insurance Practice Exam

Which elements are covered under the acronym WC SHAVVER in insurance policies?

1. Water Damage, Civil rights issues, Smoke, Hail

2. Windstorm, Civil commotion, Smoke, Hail, etc.

3. Weather catastrophes, Crime damage, Smoke, Events

4. Water loss, Construction issues, Smoke, Hazard events

The correct answer is: Windstorm, Civil commotion, Smoke, Hail, etc.

The acronym WC SHAVVER represents a set of perils typically covered under insurance policies, particularly in the context of property insurance and specifically in the context of commercial property coverage. The elements represented in the correct choice are Windstorm, Civil commotion, Smoke, and Hail, among others. Understanding this acronym is essential for anyone involved in the property and casualty insurance field, as it encapsulates types of risks that insurers consider in their coverage models. Windstorm refers to damages caused by strong winds, which can include hurricanes and tornadoes. Civil commotion includes disturbances resulting from riots or similar events that can lead to property damage. Smoke damage often arises from fires or other sources, where the resulting soot and debris can cause significant harm to properties. Hail is a specific weather-related peril resulting in damage to roofs, vehicles, and crops. The inclusion of "etc." in this option suggests that the list may extend beyond these specific perils to cover additional risks under WC SHAVVER, which aligns with how insurance policies provide broader coverage based on the outlined perils. It emphasizes the comprehensive nature of the coverage. Understanding these elements helps in evaluating insurance needs and coverage to protect against potential losses stemming from these types of risks.