Many owners are unaware of the difference between the two major insurance forms; the special form (all-risk or exclusion-based) and the basic or broad form (named perils).
The coverage forms are the foundation of every insurance policy; what is included?
Named Perils: The insurance contract will ‘name’ or list what is covered with a named perils form. There are two types: basic and broad.
Basic names 11 offer fire, lightning, explosion, windstorm or hail, smoke, aircraft or vehicle collisions, riot or civil commotion, vandalism, sprinkler leakage, sinkhole collapse, or volcanic action.
Broad names everything basic does but adds 4 more – falling objects, the weight of snow/ice/sleet, water damage in the form of leakage, and collapse from specified causes.
If your location has a peril and you file an insurance claim for anything not named above, there would be no coverage. Most b&b owners feel this is a comprehensive insurance list, but the reality is it can be misleading.