California IDEX Practice Exam

A shipment of furniture is vandalized in a storage area at the job site. Whose insurance will cover the loss?

1. Contractor's insurance

2. Owner's insurance

3. Designer's insurance

4. Dealer's insurance

The correct answer is: Owner's insurance

In this situation, the best answer is that the owner's insurance will typically cover the loss of the furniture that was vandalized in the storage area at the job site. The rationale behind this is grounded in the responsibilities and risk management practices associated with property ownership and construction sites. When property is stored on-site, the responsibility for protecting that property often resides with the owner, particularly if the materials and furniture belong to them. As a result, the owner's insurance policy is designed to safeguard against losses that occur on their property, including those due to vandalism. It's essential to consider the nature of the relationships involved. For instance, the contractor and the dealer may have coverage but typically for their own materials or work-related liabilities, not the owner's property specifically. Similarly, the designer is usually not responsible for the physical assets in storage, so their insurance would not apply in this case. Therefore, the owner's insurance is most appropriate for covering the losses associated with the vandalized furniture in the storage area on the job site.