What does an open peril policy cover?

An open peril policy, often referred to as an all-risk policy, provides coverage for all risks of physical loss or damage to property, except for those that are specifically excluded in the policy. This type of coverage is broad and comprehensive, meaning it does not limit protection to certain named perils (such as fire, theft, or vandalism), but instead covers a wide range of potential risks.

The exclusions may include common risks like wear and tear, war, or certain types of water damage, depending on the specific terms of the policy. This makes it essential for policyholders to carefully review the exclusions to understand what is not covered. In contrast, policies that cover only specific risks tend to be more limited in scope and may require comprehensive lists of perils to be covered. Therefore, choosing an open peril policy offers a more expansive level of protection against unforeseen events that may cause damage to insured items.