Which of the following statements about the original Standard Fire Policy is FALSE?

The original Standard Fire Policy is a significant document in the history of insurance as it laid the groundwork for the development of many modern insurance policies. The correct option indicates that it is false to claim that the policy exclusively covers personal property with no liability provisions.

While the Standard Fire Policy primarily focused on property insurance, it did not include liability coverage. However, the option implies exclusivity in personal property coverage and neglects to mention that the policy is strictly for property damage related claims. The core purpose of the Standard Fire Policy was to cover the physical damage to property caused by specific risks, particularly fire.

Thus, while it did not inherently include liability coverage, characterizing it as "exclusively covers personal property" is misleading because the policy focuses on property damage itself, and later coverages were developed to provide liability protection, which is not part of the original terms of this policy. Therefore, the statement about only covering personal property, omitting the context of liability, is indeed false.

In contrast, the other statements reflect accurate aspects of the policy's historical significance and scope, such as its role as a foundation for modern policies and its inclusion of specific damages like smoke damage.