PROPERTY AND CASUALTY INSURANCE
TERMS & RELATED CONCEPTS EXAM PREP
| COMPREHENSIVE DEFINITIONS, KEY
TERMS AND STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,What is covered under Basic form ? Coverages included in a typical Basic Form policy are:
1. Fire
2. Lightning (natural electricity)
3. Windstorm or Hail
4. Explosion (no coverage for bursting pipes or rupture of pressure relief devices)
5. Vandalism or malicious mischief
6. Vehicles or aircraft collision
7. Riot or civil commotion
8. Sinkhole collapse (excludes cost of filling or collapse into man-mad underground
cavities
9. Volcanic Activity (excludes removal of ash or other
Basic Form, as its name suggests, is the least comprehensive of the three coverage
options.
The important thing to note about reading Basic Form policies is that they cover only
named perils.
This means that if a coverage is not specifically named in the policy, there is no coverage.
, What is covered under Broad Form ( Also known as Open Coverages included in a typical Broad Form policy ( In addition to what's covered by the
Form )? Basic Form) are:
1. Burglary/Break-in damage
2. Falling Objects (like tree limbs)
3. Weight of Ice and Snow
4. Freezing of Plumbing
5. Accidental Water Damage
6. Artificially Generated Electricity (Sudden or Accident damage from electrical currents )
7. Building Collapse
8. Accidental discharge of liquid or steam
Broad Form coverage is more expansive than Basic Form coverage.
Like with a Basic Form policy, a Broad form policy covers only named perils.
Again, if a coverage is not specifically named in the policy, that coverage is excluded.
Fortunately, the Broad Form is designed to cover the most common forms of property
damage.
TERMS & RELATED CONCEPTS EXAM PREP
| COMPREHENSIVE DEFINITIONS, KEY
TERMS AND STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,What is covered under Basic form ? Coverages included in a typical Basic Form policy are:
1. Fire
2. Lightning (natural electricity)
3. Windstorm or Hail
4. Explosion (no coverage for bursting pipes or rupture of pressure relief devices)
5. Vandalism or malicious mischief
6. Vehicles or aircraft collision
7. Riot or civil commotion
8. Sinkhole collapse (excludes cost of filling or collapse into man-mad underground
cavities
9. Volcanic Activity (excludes removal of ash or other
Basic Form, as its name suggests, is the least comprehensive of the three coverage
options.
The important thing to note about reading Basic Form policies is that they cover only
named perils.
This means that if a coverage is not specifically named in the policy, there is no coverage.
, What is covered under Broad Form ( Also known as Open Coverages included in a typical Broad Form policy ( In addition to what's covered by the
Form )? Basic Form) are:
1. Burglary/Break-in damage
2. Falling Objects (like tree limbs)
3. Weight of Ice and Snow
4. Freezing of Plumbing
5. Accidental Water Damage
6. Artificially Generated Electricity (Sudden or Accident damage from electrical currents )
7. Building Collapse
8. Accidental discharge of liquid or steam
Broad Form coverage is more expansive than Basic Form coverage.
Like with a Basic Form policy, a Broad form policy covers only named perils.
Again, if a coverage is not specifically named in the policy, that coverage is excluded.
Fortunately, the Broad Form is designed to cover the most common forms of property
damage.
