Open Perils vs. Named Perils – Florida Insurance Coverage

homeowners insurance

The difference Between Named Perils and Open Perils

homeowners insuranceWhen it comes to insurance there are two types of perils. Open perils and named perils. Named perils offer coverage only for the perils listed. Named perils insurance policies are usually less expensive but in most cases only provide coverage for specific instances. The pro side to a named peril policy is that you are saving money whereas the negative side is that you carry more risk because if an instance occurs that is not listed in your named policy, you will not receive any coverage. It is important to know that you can choose to include or exclude specific perils in order to customize your policy. An example would be if you lived in a very dry area like a desert and flooding is the least of your concers, perhaps you would purchase a policy that only cover fire and theft. This type of policy is great for homeowners who live in very low-risk areas or who feel comfortable with managing their own risk.

Open Perils

The special form otherwise know as open perils, is different from named perils. Instead of spelling out what is covered open perils spells out what is not covered. In general open perils will cover more risk, as long as the risks are not associated with normal wear and tear. In most cases open perils will cover include most of the common named peril options unless you specifically exclude them in your policy.

To conclude, Open Perils provides you with protection for any reason nos specifically excluded. On the other hand, Named Perils, offers coverage only for the perils listed, or “named” in the policy.

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