Which statement is true about special form coverage in property insurance?

The correct statement regarding special form coverage in property insurance is that it covers all perils not specifically excluded. This type of coverage is often referred to as "all-risk" or "open perils" coverage, meaning it provides a broader scope of protection compared to basic or named perils forms. Under special form coverage, unless a particular peril is expressly excluded in the policy, it is considered covered. This ensures that policyholders have comprehensive protection against a wide range of potential risks, enhancing their financial security in the event of a loss.

On the other hand, the other choices refer to concepts that do not accurately describe special form coverage. Coverage limited to named perils or excluding unspecified perils only applies to more restrictive forms of insurance, while equating special form coverage to basic form coverage misrepresents the nature and breadth of protection that special form provides.