Glossary

Named perils

Property coverage that pays only for losses caused by perils the policy lists, such as fire, lightning and windstorm; an unlisted cause is not covered.

Also called: named peril coverage, specified perils, basic form, broad form, named perils policy

A named perils policy covers loss only if a listed peril caused it, and the insured must show that it did. The alternative is open perils, also called all-risk: the policy covers direct physical loss unless an exclusion applies, and the insurer must show the exclusion fits.

ISO's commercial property causes of loss forms show the difference. The Basic Form, CP 10 10, lists fire, lightning, explosion, windstorm or hail, smoke, aircraft or vehicles, riot or civil commotion, vandalism, sprinkler leakage, sinkhole collapse and volcanic action. The Broad Form, CP 10 20, adds falling objects, weight of snow, ice or sleet, and water damage. The Special Form, CP 10 30, is open perils and the usual choice.

Named perils coverage costs less but has holes. A pipe that bursts in a freeze, a theft, or a collapse may fall outside the list. Even open perils is not "everything": flood, earth movement and wear and tear are excluded, and those are handled with separate coverage. Named perils wording also appears in many inland marine floaters and in stand-alone wind or earthquake policies, so check which basis each policy uses. The entry on the causes of loss form sets out the three ISO tiers, special form covers the open perils option, and the guide on basic, broad and special causes of loss forms compares them in detail.

Last reviewed October 10, 2026

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Related terms

Special form (open perils) A property causes-of-loss form covering direct physical loss from any cause not specifically excluded or limited, rather than only the perils it lists. Causes of loss form The part of a commercial property policy that lists which perils are covered, offered in basic, broad and special versions of increasing breadth. Exclusion A policy provision that removes coverage for specified perils, property, people or types of loss that the insuring agreement would otherwise include. Concurrent causation How a property loss is treated when a covered peril and an excluded peril combine to cause it, which court rules and policy wording answer differently. Difference in conditions (DIC) A stand-alone property policy that fills gaps in a primary policy, usually adding flood, earthquake and broader terms, often from surplus lines insurers.

Related guides

California's commercial property and wildfire market California commercial property after the 2025 LA fires: FAIR Plan limits to $20 million, surplus lines, wildfire discounts and the 2026 nonrenewal moratorium. Basic, broad and special causes of loss forms: what each covers ISO's three causes of loss forms decide which perils your property policy pays for. Compare CP 10 10, CP 10 20 and CP 10 30 and see where claims diverge. Commercial property exclusions: what the standard policy won't pay The ISO special form covers direct physical loss unless excluded. The exclusions that fail claims, how the three tiers read, and where each gap is bought back. Difference in conditions (DIC) policies: what they cover and when to buy A DIC policy sits beside your property cover and adds flood, earthquake and other excluded perils, usually from surplus lines insurers with big deductibles. Vacant building insurance and the vacancy clause After 60 days vacant, the ISO property form drops vandalism, water damage and theft and cuts other payments 15%. What counts as vacant and how to keep coverage.

Related industries

Jewelry store insurance Why jewelers use a jewelers block instead of a standard property form, and how theft, customers' goods, shipping and security warranties work.