Which of the following is a covered cause of loss under the Causes of Loss—Basic Form?

The statement regarding volcanic action being a covered cause of loss under the Causes of Loss—Basic Form is accurate. The Causes of Loss—Basic Form in property insurance typically includes a specific set of perils, and volcanic action is one of the disasters included within that coverage. This means that if an insured property suffers damage caused by volcanic eruptions, ash fall, or related activities, the insurance policy would offer coverage for those losses.

The other causes listed, such as windstorm damage, flooding, and earthquake damage, are not included in the Causes of Loss—Basic Form. Windstorm damage may be covered under some specific policies or endorsements, but it is not part of the Basic Form. Flooding is generally excluded from standard property insurance coverage and requires separate flood insurance. Earthquake damage is also specifically excluded from the Basic Form and would require a distinct earthquake endorsement or policy. Understanding the distinctions among these perils is crucial for agents and policyholders alike, as it can significantly affect coverage decisions and claims management.