Which type of commercial insurance would likely cover a small warehouse?

Prepare for the ABRC Property Test with flashcards and multiple choice questions. Each question has hints and explanations to hone your knowledge and boost confidence for your exam.

Commercial property insurance is designed specifically to protect businesses and their assets, making it the best choice for covering a small warehouse. This type of insurance provides coverage for structures such as warehouses, as well as their contents, against various risks including fire, theft, and certain natural disasters. It helps ensure that business owners can recover financially from losses associated with damage or destruction of their property.

In contrast, homeowners insurance is intended for residential properties, personal auto insurance covers vehicles, and while the building and personal property form might apply to some commercial settings, it typically caters to specific types of incidents rather than the broader coverage required for a warehouse’s commercial operations. Thus, commercial property insurance is the most fitting choice for a small warehouse.

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