Georgia Adjuster Practice Test

What kind of risk is covered under a 'special' property insurance policy?

1. All risks of loss except exclusions

2. Only specified risks

3. Only risks caused by fire

4. Natural risk only

The correct answer is: All risks of loss except exclusions

The characteristic of a 'special' property insurance policy is that it typically covers all risks of loss except for those specifically excluded in the policy terms. This means that the policy provides extensive protection, addressing a wide range of potential damages and perils that could affect the insured property. The approach is comprehensive, focusing on providing broad coverage and only limiting that coverage through explicit exclusions, such as certain natural disasters or specific types of negligence. This comprehensive nature allows policyholders to have a higher level of confidence in their investment, as they are protected against a variety of unexpected risks. Understanding this aspect of special policies is crucial for both consumers and insurance professionals, as it highlights the importance of carefully reviewing policy exclusions to know what isn’t covered. The other options do not accurately reflect the inclusive approach inherent to special policies, which distinguishes them clearly from more limited types of coverage.