Definition of "Open Perils Policy"

Ann Costigan real estate agent

Written by

Ann Costiganelite badge icon

Berkshire Hathaway HomeServices Hudson Valley Properties

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!

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Circumstance that produces the loss. ...

Type of accounting method, in life insurance, designed to match revenues and expenses of an insurer according to principles designed by the Financial Accounting Standards Board and the ...

Legislation that makes an establishment and/or individual selling liquor responsible for injuries caused by its customers to third parties. The best known law governing dispensation of ...

Document used in the transportation of goods that must be presented when a claim is made for a loss incurred. This document establishes the fact that the goods were under the care, custody, ...

U.S. government group term life insurance for male and female members of the federal uniformed forces on active duty, underwritten by private insurance companies. Premiums reflect peacetime ...

Method of calculating retirement benefits under pen ...

new dividend option under which the policyowner allows the dividends from the participating policy to be applied for the purposes of accumulating cash values. ...

Insurance marketed through advertising in such media as newspapers, magazines, television, and radio. The mail is used to collect the application and distribute the policy. An insurance ...

Health insurance that provides coverage for physicians' fees for all services, with the exception of surgeons' fees. ...

Popular Insurance Questions