Special Form vs. Named Peril

You should check your homeowners policy to make sure that your building and personal property is covered on a special form rather than a named peril basis. Named peril means that the policy insures against the sources of loss (perils) that are listed in the policy such as fire, earthquake or hail. Special form coverage protects property against any source of loss that is not specifically excluded. Under named peril coverage, the policyholder may have to prove to the insurer that a loss was caused by a listed peril. With special form coverage, the insurer can only deny a claim if it can prove that the source of loss is excluded.

Generally, a special form policy is preferable since it offers more coverage than a named peril policy. Here are a few examples of losses where special form coverage made the difference and a claim was paid:

Revised 02/02


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