Installment #3 - Insurance Issues For the Real Estate Investor

[Ivan Oberon]

Basic/Broad/Special (all-risk):

By definition, “all-risk” simply means that unless something is excluded, it is covered. “Named peril,” means just that, in order for a loss to be covered, its cause must be named in the policy. So, even though “all-risk” is a more comprehensive form, it does not mean that “everything” is covered. Take a look at your policy exclusions. Not that many of these exclusions can’t be purchased back, but they usually generate a pretty long list. Basic and Broad forms put the "burden of proof" on the policyholder in regards to the cause of damage/loss. Special Form reverses this and opens you up for broader coverage.

Tricky stuff or easy??