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
Coverage for the percentage of the health care costs paid by the health insurance company, which is usually 80% above the insured's deductible up to a dollar amount of approximately $5000. ...
Amendment that modifies the federal flood insurance program by providing relocation and acquisition coverage for structures in imminent danger from an encroaching shoreline. This amendment ...
Form of state rating law that requires prior approval of property and casualty insurance premiums by the state insurance department for certain changes. Here, a state generally allows new ...
Extra life insurance benefit found in the family income policy, family income rider, family MAINTENANCE POLICY, and FAMILY POLICY payable to the BENEFICIARY should the insured die within a ...
Form that covers exposures associated with efforts to operate a business that is damaged by a peril such as fire. For example, a special electrical generator may have to be purchased in the ...
Date of issue of the policy. ...
Law that provided for federal crime insurance. Because private insurance is not available for business owners and residents of certain high-crime areas, the act provides that the federal ...
Accident policy that covers a traveler for a single trip on an airplane or other common carrier. The name comes from its origin as part of the ticket or ticket stub, but these policies are ...
Important 1944 U.S. Supreme Court ruling that the insurance business constituted interstate commerce and was thus subject to the SHERMAN antitrust act. This decision came in U.S. v. ...
Have a question or comment?
We're here to help.