Nite
Valued Contributor
Basic Form Policy
The basic form policy offers the least amount of coverage among the three types. It specifically lists the causes of loss (perils) that are covered. Common perils covered by basic form policies include fire caused by lightning, explosions, or vandalism. If a peril is not mentioned in the policy, it will not be covered.
Broad Form Policy
Broad form policies provide coverage for all perils listed in the basic form policy, along with additional specific hazards outlined in the policy. Similar to basic coverage, if a peril is not explicitly named, it will not be covered. Examples of coverage under broad form policies may include fires resulting from vehicle collisions or damage from firefighting efforts such as foam and water damage.
Special Form Policy
Special form coverage is the most comprehensive and expensive option among the three types of commercial fire insurance policies. Instead of listing covered perils, special form policies specify the perils that are excluded from coverage. Any peril not mentioned as an exclusion will automatically be covered under this policy, making it highly inclusive and providing extensive protection against various risks.
The basic form policy offers the least amount of coverage among the three types. It specifically lists the causes of loss (perils) that are covered. Common perils covered by basic form policies include fire caused by lightning, explosions, or vandalism. If a peril is not mentioned in the policy, it will not be covered.
Broad Form Policy
Broad form policies provide coverage for all perils listed in the basic form policy, along with additional specific hazards outlined in the policy. Similar to basic coverage, if a peril is not explicitly named, it will not be covered. Examples of coverage under broad form policies may include fires resulting from vehicle collisions or damage from firefighting efforts such as foam and water damage.
Special Form Policy
Special form coverage is the most comprehensive and expensive option among the three types of commercial fire insurance policies. Instead of listing covered perils, special form policies specify the perils that are excluded from coverage. Any peril not mentioned as an exclusion will automatically be covered under this policy, making it highly inclusive and providing extensive protection against various risks.
