What does open perils insurance cover?

Open perils insurance, often referred to as all-risk coverage, provides protection against any risk of loss unless it is specifically excluded in the policy. This means that if a loss occurs due to a cause that is not explicitly listed as an exclusion, the insurance will cover that loss. This type of coverage tends to offer broader protection compared to named perils coverage, which only covers risks that are explicitly listed in the policy.

For example, if a policy has open perils coverage and an individual experiences theft or damage from a non-natural disaster event (such as vandalism), that loss would typically be covered, provided theft or vandalism is not specifically excluded in the policy terms.

On the other hand, options that focus on only listed perils or exclude certain types of risks limit the scope of coverage and would not align with the definition of open perils insurance. By encompassing any risk of loss that is not explicitly excluded, open perils insurance offers a more comprehensive safety net for policyholders, making it an appealing choice for many consumers seeking extensive protection for their assets.