If a fire insurance policy excludes storm damage, what type of damage would be covered if a storm coincided with a fire due to faulty machinery?

The correct answer highlights that if a fire insurance policy explicitly excludes storm damage, then coverage will only extend to the fire damage itself. In this scenario, the presence of a storm does not alter the fact that the policy does not cover storm-related losses. The insurance would pay for damages resulting from the fire, including any resultant losses directly attributable to the faulty machinery that initiated the fire.

This situation could be relevant in assessing claims where both incidents (the fire and the storm) occur simultaneously. However, under the stipulations of the policy, storm damage remains excluded, thus limiting the coverage strictly to the consequences of the fire. Therefore, only the fire damage is eligible for coverage under the policy's terms.

The other options suggest varying levels of coverage for storm damage or both types of damage, but these would not align with the specific exclusions stated in the insurance policy. In essence, the clear terms of the fire policy delineate that storm-related damages are outside its coverage scope, ensuring that only the fire damage is compensated.