Which statement regarding fire department service charge coverage under the businessowners policy is false?

The statement regarding fire department service charge coverage under the businessowners policy that is considered incorrect is that this coverage limit pays in place of the limit of insurance shown in the declarations.

In a businessowners policy, fire department service charge coverage is designed to provide additional financial support for costs incurred when the fire department responds to a fire at the insured property. This coverage does not replace or diminish the overall limit of insurance specified in the policy's declarations; rather, it operates in addition to those limits.

Any charges incurred for fire department services are covered without impacting the primary limit of coverage for other types of losses. This distinct nature of the fire department service charge coverage ensures that policyholders can access funds for these specific expenses while maintaining the integrity of their broader property damage protection.

Other aspects of this coverage, such as its availability across different states or the specifics of its limitations, are contextual but do not define the primary misunderstanding encapsulated in the statement that claims it pays instead of the policy limits. Understanding this distinction is crucial for accurately interpreting the coverage provided under a businessowners policy.