Which situation would not be covered by the basic causes of loss form under a commercial property policy?

The situation regarding the Surf Side Club Waterfront Restaurant being damaged when flood waters rise is not covered by the basic causes of loss form under a commercial property policy because standard property insurance typically does not include flood damage. Instead, flood coverage is usually obtained through a separate flood insurance policy. This distinction is crucial, as it helps property owners understand the limitations of their standard commercial property policy and the necessity of supplemental policies for specific risks like flooding.

Conversely, damage from fire, theft, and storms falls within the purview of basic coverage options, as these are common perils that most commercial property policies are designed to protect against. Understanding the scope of coverage options under different insurance policies ensures that business owners adequately protect their assets and mitigate potential financial losses from unforeseen events.