Question 89

Special coverage is considered to be 'all-risks' coverage.

Special coverage encompasses all risks of loss to covered property, except for those specifically excluded in the policy. This makes it the most comprehensive option among the Causes of Loss forms.

A) Basic

Basic coverage is limited to a specified list of perils, such as fire, lightning, and explosion. It does not provide the extensive coverage offered by special forms, making it insufficient for 'all-risks' protection.

B) Broad

Broad coverage extends the list of perils covered beyond basic forms to include additional risks such as falling objects and weight of ice, snow, or sleet. However, it still does not cover all risks, as it excludes certain perils that are included under special coverage.

C) Extended

Extended coverage typically adds more specified perils to basic coverage, but like broad coverage, it falls short of the comprehensive nature of special coverage. It does not provide an 'all-risks' approach, focusing instead on a defined list of additional risks.

D) Special

Special coverage is recognized for its 'all-risks' nature, covering all perils unless explicitly excluded in the policy. This form offers the highest level of protection against a wide range of potential losses.

Conclusion

Special coverage is definitively the correct answer as it offers 'all-risks' protection, which is not available in basic, broad, or extended forms. Each of the other options specifies certain perils or limitations, failing to provide the comprehensive coverage that special coverage guarantees. Thus, for individuals seeking maximum security against losses, special coverage is the superior choice.