An insurance policy that covers all causes of loss except those specifically excluded. Also called an all-risk policy, it provides broader protection than a named peril policy because you are covered unless the policy explicitly says otherwise.
Related Terms
Exclusion
A specific condition, situation, or circumstance that is not covered by an insurance policy. Common exclusions include flood damage on standard homeowners policies and intentional acts. Understanding your policy exclusions is critical to avoiding gaps in coverage.
Homeowners Insurance
A policy that bundles coverage for your home's structure, personal belongings, liability protection, and additional living expenses into one package. The most common form is the HO-3 policy, which covers the dwelling on an open-peril basis and personal property on a named-peril basis.
Named Peril Policy
An insurance policy that only covers losses caused by perils specifically listed in the policy, such as fire, theft, or windstorm. If a loss is caused by a peril not on the list, it is not covered. Named peril policies are generally less expensive than open peril policies.