Principles of Risk Management and Insurance, 13th Edition

Causes-of-Loss Forms

A causes-of-loss form is part of the complete contract. Insureds can select one of the following forms:

• Causes-of-loss basic form

• Causes-of-loss broad form

• Causes-of-loss special form

The difference among these forms is the perils ­covered. The basic and broad forms provide named-perils coverage. The special form provides open perils coverage and insures against direct physical loss to covered property.⁶

Causes-of-Loss Basic Form

The causes-of-loss basic form provides coverage for 11 basic causes of loss (perils) to covered property:

• Fire

• Lightning

• Explosion

• Windstorm or hail

• Smoke

• Aircraft or vehicles

• Riot or civil commotion

• Vandalism

• Sprinkler leakage

• Sinkhole collapse

• Volcanic action

Causes-of-Loss Broad Form

The causes-of-loss ...