How do “Open Perils” and “Named Perils” policies differ?

Most homeowners insurance policies sold today can be described as “Open Perils” policies versus “Named Peril” policies. With “Open Perils” you will have more types of losses covered because of the way the policy is written. The “Open Perils” policy covers all causes of loss except for those that are specifically excluded. This is the exact opposite structure of the “Named Perils” policy, which states that it only covers those perils that are specifically listed in the policy.

Here is a list of named perils:

  1. Fire
  2. Lightning
  3. Windstorm
  4. Hail
  5. Explosion
  6. Riot
  7. Civil commotion
  8. Aircraft
  9. Vehicles
  10. Smoke
  11. Vandalism
  12. Malicious mischief
  13. Falling objects
  14. Weight of ice, snow, or sleet
  15. Accidental discharge or overflow of water or steam
  16. Sudden and accidental damage from artificially tearing apart, cracking, burning or bulging
  17. Freezing
  18. Sudden and accidental damage from artificially generated electrical current
  19. Volcanic eruption
  20. Theft

The popularity of the “Open Perils” policy is primarily due to the insurance industry’s desire to provide better coverage for its customers. Better coverage, however, should not be construed as complete coverage that covers everything that might happen.

When you look closely at the exclusions in the “Open Perils” policy you may notice some large gaps in coverage.  The good news is that some of these gaps can be addressed with additional coverage options.  Having an awareness of what is not covered will enable you to decide whether the optional coverages are worth the extra expense.

Please see the list below for several of the most common exclusions from a homeowners policy.

  1. Ordinance
  2. Law
  3. Earth Movement
  4. Power failure
  5. Neglect
  6. War
  7. Nuclear Hazard
  8. Intentional Loss
  9. Water damage
  10. Acts or Decisions
  11. Faulty, inadequate or defective planning, zoning, etc…

NOTE: These lists may not be complete or representative of all Homeowners policies.

One Response to “How do “Open Perils” and “Named Perils” policies differ?”

  1. Lestai says:

    Yhanks for your great website! ^^

    Lesbian Hentai

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