Which situation would be covered under the Broad Form (DP-2) policy's falling object peril?

Study for the North Carolina Property Insurance Agent Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

The Broad Form (DP-2) policy's coverage for the falling object peril is designed to include various scenarios involving damage caused by objects that fall or are dropped onto a structure. When examining the options, the correct choice highlights a situation where interior damage occurs as a direct result of an exterior impact caused by a falling object.

In option C, the scenario describes a situation where the exterior of the building is damaged first, followed by subsequent damage to the interior. This aligns with the policy's intent since the falling object must strike the building's exterior before it can lead to interior damage. The sequence of external damage leading to internal damage reflects the nature of this peril and upholds the coverage provision specified by the Broad Form policy, ensuring that both exterior and interior damages are addressed when they result from the same incident involving a falling object.

The other options do not fit within the parameters of the falling object peril as defined by the policy. For example, damages that occur without any external impact or that do not demonstrate a clear connection between exterior and interior damage might not be sufficiently covered under this specific peril.

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