Habitational policies are sold in three coverage tiers, each broader than the last.
- Standard (named perils) form, the narrowest. Covers loss caused by specified perils only: fire, lightning, explosion, smoke, windstorm, hail, falling objects, vandalism (sometimes), water escape (limited), and certain others. The burden is on the insured to prove the loss was caused by a listed peril.
- Broad form, the middle tier. Provides comprehensive (all-risk) coverage on the building and named-perils coverage on the contents. The insured proves loss; the insurer must prove an exclusion applies for the building portion.
- Comprehensive form, the broadest. Provides comprehensive (all-risk) coverage on both building and contents. Same burden-shift logic on both sides of the package.
Each tier has the same exclusions (intentional acts, wear and tear, gradual deterioration, certain water perils unless endorsed, earthquake unless endorsed, mould unless caused by an insured peril, war and nuclear). Comprehensive does not mean "covers everything". It means "covers what is not excluded".
Common mistake: assuming broad-form contents are all-risk. They are not. Broad gives all-risk on the building only; contents remain named-perils. Upgrading contents to all-risk requires the comprehensive form (or a contents-only all-risk endorsement, where offered).
🧠 Memory hook, "Standard < Broad < Comprehensive": in order of breadth, but every tier still has exclusions.
Recall: Under a broad form, what coverage applies to the building and what coverage applies to the contents? Which tier provides all-risk on both?