What does open perils coverage entail?

Open perils coverage, also known as all-risk or comprehensive coverage, provides protection against all types of risks and incidents unless they are specifically excluded in the policy. This means that the burden of proof is on the insurance company to demonstrate that a particular claim is not covered due to an exclusion. This type of coverage is broader and more inclusive compared to named perils coverage, which only provides protection against specifically listed risks.

Given that open perils coverage encompasses a wide array of potential incidents, it is essential for policyholders to thoroughly review exclusions to fully understand the limitations of their coverage. This contrasts with the other types of coverage mentioned, which either limit the coverage to specific incidents or adjust based on other factors like property valuation or geographical location. Such characteristics make open perils coverage a preferred choice for many seeking comprehensive protection for their assets.