Three forms. Two ways of defining coverage.
A “peril” is a cause of loss, such as fire or hail. Named-peril coverage depends on the cause appearing in the policy’s covered list. Open-peril coverage works from a broader starting point, then applies the exclusions and other terms.
| Form | How it works | What to understand |
|---|---|---|
| Basic | A limited list of named causes of loss. | Fire and lightning are common examples. Additional perils vary by policy family and endorsements. |
| Broad | A longer list of named causes of loss. | Common additions include falling objects, weight of snow or ice, and specified accidental water damage. |
| Special | Open-peril coverage for the insured property to which it applies. | Broader coverage, with exclusions and limitations. “Special” does not mean every loss is covered. |
These are general descriptions, not a list of benefits in a specific policy. See the Texas Department of Insurance’s commercial property guide and Maine’s form comparison.
What would you want covered?
A fire, a stolen air conditioner, and a frozen pipe can lead to very different coverage questions. Choose the concerns on your mind to see where they fit in the comparison.
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An educational comparison, not a coverage determination or a promise that a policy is available. Actual policy language and the facts of a loss control.
An empty building changes the conversation.
Consider a store waiting for a new tenant. A break-in leaves the door damaged and an air-conditioning unit missing. One event has produced different kinds of damage. The presence of vandalism coverage alone does not establish coverage for the stolen equipment.
Vacancy provisions can remove or reduce coverage for losses such as theft, vandalism, and water damage. A special-form policy can still contain those restrictions. Permission for a building to be vacant also needs to be read alongside any remaining exclusions and protective conditions.
That is why a vacant-property proposal needs to reflect the building’s present use, its condition, and any work underway. A form that suits an occupied office is not automatically suitable after the last tenant leaves.
Background: vacancy clauses and protective safeguards. Our vacant vs. unoccupied guide explains the occupancy distinction.
The names repeat. The forms are different.
Commercial property causes-of-loss forms and dwelling forms are separate policy families. A basic dwelling form, often called DP-1, starts with fire, lightning, and internal explosion; endorsements can add other perils. That is not the same list commonly found in a commercial basic form.
Broad dwelling coverage is often called DP-2. Special dwelling coverage, DP-3, commonly uses open perils for the dwelling and other structures, while personal property remains on a named-peril basis. A label on a proposal does not tell the whole story.
Source: IRMI’s dwelling property form definitions. Insurer forms and endorsements can differ.
A few questions that come up often.
Does special form include flood and earthquake?
Generally, no. These exposures usually need separate insurance or specific added coverage. Open perils still has exclusions.
Does special form mean replacement cost?
No. The form describes covered causes of loss. Replacement cost and actual cash value describe how covered damage is valued. A broad cause-of-loss form can still have depreciation or a separate roof settlement provision.
Does a basic policy include liability?
The basic, broad, or special property label does not answer that question. Liability is a separate coverage part or policy. This is especially relevant to vacant land, where injury claims may be the main insurance concern.