Covered Causes of Loss/ Named Perils

Property insurance is typically written on 3 different forms: Basic, Broad and Special. The Basic form having the least coverage, Special having the most coverage.

The Basic Form typically includes eleven named perils that are considered covered causes of loss. There is only coverage if damage is caused by one of the below perils, everything else would be excluded.

1. Fire.
2. Lightning.
3. Explosion.
4. Windstorm or Hail.
5. Smoke
6. Aircraft or Vehicles.
7. Riot or Civil Commotion.
8. Vandalism.
9. Sprinkler Leakage.
10. Sinkhole Collapse
11. Volcanic Action.

The Broad Form normally adds 4 named perils to the covered causes of loss section in addition to the eleven perils covered under the Basic Form.

12. Breakage of Glass.
13. Falling Objects.
14. Weight of Snow, Ice or Sleet.
15 Water Damage, meaning accidental discharge or leakage of water or steam as direct result of the breaking or cracking of any part of a system or appliance containing water or steam, other than an Automatic Sprinkler System. There is no coverage for water damage/ flood that comes from an outside source.

The Special Form provides the most comprehensive property coverage. The Special Form is not written on a named peril basis and states coverage unless specifically excluded. So, the Special Form provides coverage for all 15 Named perils as in both the Basic and Broad Forms, but also states coverage for anything else, unless it is specifically excluded on the policy.

When selling insurance, Ballenger Insurance, tries to sell only the Special Form to give our clients the most coverage available. If you are not sure what coverage you have, please check with your trusted insurance advisor to make sure you have the proper protection.

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