Property · Insurance Term
Causes of Loss – Basic Form (CP 10 10)
Definition
The Causes of Loss – Basic Form (CP 10 10) is a commercial property form that covers only a short list of named perils, such as fire, lightning, explosion, windstorm or hail, smoke, vandalism and sprinkler leakage. If a cause of loss is not on the list, it is not covered.
In Plain English
Commercial property policies pair a coverage form with a causes of loss form. The basic form is the narrowest common option. It uses a named perils approach: coverage applies only to the peril types it lists.
Its list typically includes fire, lightning, explosion, windstorm or hail, smoke, aircraft or vehicles, riot or civil commotion, vandalism, sprinkler leakage, sinkhole collapse and volcanic action. Common losses such as water damage from a burst pipe, theft and many collapse scenarios are not included.
The basic form is sometimes used for vacant buildings, older properties or hard-to-place risks. Most occupied commercial buildings use the broader Causes of Loss – Special Form when available. Each form also carries exclusion terms.
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Example
Hypothetical: a vacant retail building is insured on the basic form. A pipe bursts and floods the interior. Because water damage is not one of the named perils, the policy would generally not pay, even though a fire would have been covered.
Why It Matters for Texas Property Owners
On the Texas coast, windstorm or hail may be excluded from a basic form policy by endorsement, with wind insured separately, such as through TWIA.
What to Watch For
- Check the forms list on your declarations to see which causes of loss form applies.
- If you have the basic form, ask what it would cost to move to special form.
- Consider theft and water damage exposures if you stay on basic form.
- Look for windstorm exclusions on coastal properties.
Last updated October 14, 2026 · Primesure editorial team · How We Write