Virginia Property and Casualty Practice Exam

The term that refers to a policy covering specialized property and perils not included in a standard policy is known as "Difference in Conditions." This type of insurance is specifically designed to fill the gaps that may exist in standard property policies, which often have numerous exclusions and limitations.

Difference in Conditions policies provide coverage for various risks that standard insurance may not address, such as certain natural disasters, flood damage, or specific types of equipment. This makes them particularly valuable for businesses or property owners with unique risks or exposures that require coverage tailored beyond what standard policies offer.

The other terms mentioned refer to different types of coverage: Broad Form Coverage typically expands on standard policies to include additional perils, Basic Form Coverage provides limited coverage for specific named perils, and Liability Agreements focus on liability risks rather than specialized property coverage. Hence, the specificity and intent of the Difference in Conditions policy make it the correct term for this situation.