Open Perils Policy
Definition of "Open Perils Policy"
The open perils policy is the counterpart to the named perils policy. In it, any peril NOT mentioned is covered by the policy.
Here's an example: let's say you got an open perils policy homeowner's insurance and it lists volcanoes eruptions and floods. If there was a fire or if a hurricane sent a tree through your window (and, why not, it provoked a fire afterward), your damages will be me covered and your house repaired by the insurance company. Now, if a volcano erupted and lava burned your house to the ground or a flood damaged the whole electrical circuit... sorry, no deal. You're on your own.
So, basically, if the insurance company cannot prove that whatever happened to your house was listed as an exclusion, they will have to afford the repair or replacement of it.
This is usually done in areas where it is just highly probable for specific damages to happen. So, you will most likely find open peril listing volcanoes on Hawaii than in Florida, because, what's the point?
Real Estate Tips:
Don't let yourself open to unfortunate events: know your lingo by searching our Real Estate Glossary!
Search as you want and then find a real estate agent to serve you!
Popular Insurance Terms
Provision of liability policies and the liability sections of package insurance policies, such as the personal automobile policy (pap), that pay medical expenses without regard to fault. ...
Pension plan funding instrument in which contributions paid by an employer are deposited to accumulate at interest. (These plans are usually noncontributory.) Upon retirement, an immediate ...
Insurance for which premiums are charged according to the size of the face amount of the policy, so that the greater the face amount, the lower the cost per $1000 unit of insurance. ...
Highest price investor is willing to pay for a stock or mutual fund unit and lowest price a seller of a stock or mutual fund is willing to accept. ...
Group of mutual insurers that provides insurance for nuclear reactors that standard property and liability policies exclude. The federal government provides supplementary coverage. ...
Limited number of payments, the first of which is due immediately, and payments thereafter are contingent upon the designated beneficiary (the annuitant) continuing to live. After the limit ...
Day-to-day care that a patient (generally older than 65) receives in a nursing facility or in his or her residence following an illness or injury, or in old age, such that the patient can ...
Measurement of the response of the cash flow of an insurance company to various interest rate scenarios; for example, how rising interest rates will affect the number of life insurance ...
Combination policy plan of fidelity insurance and crime insurance under five standard agreements: Insuring Agreement dishonesty of employees on either a COMMERCIAL BLANKET BOND or ...
Have a question or comment?
We're here to help.