Multi-Family Complexes (Apartment and Condo)



...otherwise excluded or limited. While theoretically the broadest coverage available and the most expensive, this form can be a trap for the unwary. There are a number of versions of this form with substantial variation in the wording of the exclusions—some of them even taking away coverage that would be provided under the Broad Form.

This is particularly true following the addition of the “concurrent causation” language several years ago, which excludes loss by any excluded cause “regardless of any other cause or event that contributes concurrently or in any sequence to the loss .” Interpretation of this language is still up in the air, as in some cases it seems to work an undue hardship on insureds. While all three Causes of Loss forms have this language, losses involving a named cause and an exclusion seem more likely to be resolved in favor of coverage for the insured than under the Special Form, which does not specifically name individual causes of loss, except for a list of “specified causes of loss.”

If you are considering use of the Special Form, be sure to make a line-by-line comparison of the Special Form exclusions with the coverage offered under the Broad Form. Excluded from all three Covered Causes of Loss forms are each of the following which, to be covered, require separate insurance: