What does a special form policy cover in property insurance?

A special form policy is designed to provide comprehensive coverage for property insurance by protecting against all perils except those specifically excluded in the policy. This means that unless a specific peril—such as flood or earthquake—is mentioned in the exclusions, it is generally covered. This broad scope of protection offers a significant advantage to policyholders, as it minimizes the risks of having unprotected exposures that can result from unforeseen events.

In contrast, the option that only covers named perils, as well as those that focus solely on fire and theft, provide limited protection and do not offer the extensive coverage provided by the special form policy. Similarly, normal wear and tear is typically not covered in property insurance policies, as these forms of damage are considered a maintenance issue rather than a result of an insurable peril.