Open Perils Policy

An open perils policy (also called "all-risk" or "special form") provides broader coverage by protecting against all causes of loss except those specifically excluded in the policy.

How It Works: Instead of listing what IS covered, open perils policies list what ISN'T covered. If a cause of loss isn't excluded, it's covered.

Common Exclusions:

• Flood (requires separate policy)
• Earthquake (requires endorsement)
• War and nuclear hazard
• Intentional damage
• Wear and tear
• Pest damage
• Government action
• Neglect

  Advantages:

• Broader, more comprehensive coverage
• Covers unexpected and unusual losses
• Insurer must prove an exclusion applies to deny a claim

  Disadvantages:

• Higher premiums
• Can create false sense of "everything is covered"
• Still has important exclusions

  Standard HO-3 Policy:

Most homeowner's policies are HO-3, which provides:

• Open perils coverage for the dwelling
• Named perils coverage for personal property

  Upgrade Option:

HO-5 policies provide open perils coverage for both dwelling AND personal property.