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& ADA ASSOCIATES LLC
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JM & ADA ASSOCIATES LLC

Full Service Insurance Brokerage

Main:646-494-4355

Fax: 212-320-0339

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FAQ

WHAT ARE THE DIFFERENCES BETWEEN BASIC, BROAD, AND SPECIAL CAUSE OF LOSS POLICY FORMS?


Basic Form policies are the least comprehensive, and cover you for named perils, including:

Fire
Lightning (natural electricity)
Windstorm or Hail
Explosion (no coverage for bursting pipes or rupture of pressure relief devices)
Smoke (sudden and accidental loss or damage – no coverage for agricultural smudging or industrial smoke)
Riot or civil commotion
Vandalism or malicious mischief
Vehicles or aircraft
Volcanic action (excludes removal of ash or other debris that does not cause direct damage)
Sinkhole collapse (excludes cost of filling or collapse into man-mad underground cavities

If the peril is not specifically listed, there is no coverage.


Broad Form policies are more extensive in coverage as they include all the perils of the Basic Form plus:

Weight of Snow, Ice, or Sleet
Water Damage
Falling Objects
Glass Breakage
Building Collapse

Special Form policies are the most inclusive and read differently than Basic and Broad Form.  That is, Special Form policies include coverage for direct loss from all perils unless they are specifically excluded.  The exclusions are: