Open perils, also known as all risks, refers to a type of insurance coverage that protects against all possible causes of loss or damage to insured property, except for those explicitly excluded in the policy. This means that any peril or event that is not specifically named in the exclusions is automatically covered by the policy.
Under an open perils policy, the burden of proof lies with the insurance company, as they are responsible for proving that a particular loss or damage falls within one of the exclusions listed in the policy. This coverage is often provided for personal property or real estate, and it offers a wider scope of protection compared to named perils policies, which only cover specifically listed events such as fire, theft, or natural disasters.
Open perils insurance provides a comprehensive and flexible coverage approach, as it includes protection against a wide range of risks, including accidental damage, burglary, vandalism, and other unforeseen circumstances. However, certain perils may still be excluded from coverage, such as war, terrorism, nuclear accidents, and intentional acts. It is essential for individuals seeking open perils coverage to thoroughly review their policy to understand the specific exclusions and limitations.
Insurance policies differ in terms of the perils covered and the level of coverage provided. Open perils is an option that offers extensive protection by default, excluding only those risks specifically mentioned in the policy. It is commonly chosen by individuals who value broad coverage and peace of mind against a variety of unexpected events or perils that could result in property damage or loss.
