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
Situation involving a chance of a loss or no loss, but no chance of gain. For example, either one's home burns or it does not; this risk is insurable. ...
Applications for insurance coverage that have been forwarded to an insurer but not yet processed. ...
Ratio commonly used by the property and casualty insurance industry as a measure of financial strength or to indicate to what degree a particular insurance company is leveraged. A low ratio ...
Coverage of the hull of a ship and its tackle, passenger fittings, equipment, stores, boats, and ordnance. Coverage is provided under the following types of policies: builders risk hull ...
Irrevocable living trust (rights to make any changes are forfeited by the grantor permanently) in which the grantor forfeits control of all assets placed in the trust. However, the grantor ...
Liability insurance coverage for claims arising from acts that occurred before the beginning of the policy period. Policies written on a claims made basis, such as malpractice liability ...
Individual who has a contractual agreement with a policyowner. The agent of record has a legal right to commissions from the insurance policy. ...
Payments made on a monthly basis by users of the medical services of health maintenance organizations (HMOs). After this payment is calculated for a future period of time, usually one year, ...
Expenses and damages incurred as the result of damage to a ship and its cargo and/or of taking direct action to prevent initial or further damage to the ship and its cargo. These expenses ...
Have a question or comment?
We're here to help.