Extended Coverage and Additional Perils Endorsements
Broadening the base form
Extended coverage adds perils beyond fire: windstorm or hail, explosion, riot or civil commotion, aircraft, vehicles, and smoke. Additional perils endorsements typically add vandalism and malicious mischief, sprinkler leakage, sinkhole collapse, volcanic action, and weight of ice, snow, or sleet. The special form replaces named perils with risk of direct physical loss subject to exclusions.
Traps to watch
- Windstorm exclusions for interior damage unless the building envelope is breached.
- Smoke from agricultural smudging or industrial operations is often excluded.
- Vehicle coverage usually excludes damage to the insured's own vehicles and to pavement.
- Vandalism may be excluded if the building has been vacant beyond a stated period.
- Named-peril versus all-risk: under a named-peril form, the insured proves the peril; under a special form, the insurer must prove an exclusion applies.
Rule of thumb
Named peril = insured bears the burden of proving the loss fits a listed peril. Special form = burden shifts to the insurer to prove an exclusion.
Worked example
A windstorm tears off part of a roof; rain then damages interior stock. Under a form excluding interior damage unless the envelope is breached, the torn roof satisfies the breach and the interior water damage is covered. If the roof had leaked before the storm, the pre-existing leak would be excluded and only the storm-caused portion covered.