Special Form (All-Risk) Coverage

Special form coverage, also referred to as all-risk or open-peril coverage, takes the broadest approach to insuring property. Rather than listing the specific perils that are covered (as a named-peril form does), a special form covers all causes of loss unless they are specifically excluded. This means any peril that is not listed as an exclusion is covered, and the burden of proof shifts to the insurer to demonstrate that an exclusion applies.

For apartment buildings, special form coverage is the standard recommendation because it captures a wide range of loss scenarios that a named-peril form might miss. Unusual or unexpected causes of damage, such as the weight of ice and snow, falling objects, or accidental discharge from a building system, are typically covered under a special form but may not appear on a named-peril list.

Common exclusions in special form policies include flood, earthquake, war, nuclear hazard, government action, intentional acts, and wear and tear. Each of these exclusions can be addressed through separate policies or endorsements. The key advantage of the special form is its default position of coverage, which provides apartment owners with the broadest available property protection.