A more thorough explanation:

Definition: A basic-form policy is a type of insurance policy that offers limited coverage against loss. It generally covers damages from fire, windstorm, explosion, riot, aircraft, vehicles, theft, or vandalism. It is also known as a limited policy or specific policy.

Example: A homeowner purchases a basic-form policy that covers damages from fire and theft. If their home is damaged in a windstorm, the policy will not cover the cost of repairs because windstorm damage is not included in the coverage.

This example illustrates how a basic-form policy offers limited coverage and only covers specific types of losses.