What is the difference between a “special form” policy and a “named perils” policy?
A named perils policy covers losses that are caused by only those perils listed in the policy. The perils typically covered include fire, windstorm, hail, and other direct physical losses. A special form policy covers losses that are caused by any peril except those specifically excluded in the policy. It is important to note that a special form policy provides broader protection than do named perils policies. Both policies also exclude earthquake and flood insurance.
