Which policy would typically cover a furnace explosion?

Which policy would typically cover a furnace explosion?

• A. Equipment breakdown policy
• B. Commercial property policy
• C. CGL
• D. Auto

Answer: (B)

When a furnace explodes, the issue is damage to the insured’s own property. Property insurance is designed to cover direct physical losses to a building and its contents from covered perils, including explosions. So a commercial property policy would typically respond to pay to repair or replace the damaged property and cover related on-site losses. The other coverages don’t fit as well here. A CGL focuses on third‑party injuries or property damage, not the insured’s own property. An equipment breakdown policy deals with losses arising from the mechanical or electrical failure of equipment itself, not the broader property damage from an explosion to the building or stored items. An auto policy is unrelated to buildings or on-site equipment.

When a furnace explodes, the issue is damage to the insured’s own property. Property insurance is designed to cover direct physical losses to a building and its contents from covered perils, including explosions. So a commercial property policy would typically respond to pay to repair or replace the damaged property and cover related on-site losses.

The other coverages don’t fit as well here. A CGL focuses on third‑party injuries or property damage, not the insured’s own property. An equipment breakdown policy deals with losses arising from the mechanical or electrical failure of equipment itself, not the broader property damage from an explosion to the building or stored items. An auto policy is unrelated to buildings or on-site equipment.