All-Risk (Open Perils) Coverage
Definition:
Insurance that covers all causes of loss except those specifically excluded in the policy.
Explanation:
This coverage is broader than “named perils” policies, which only protect against risks listed in the contract. All-risk ensures most accidental damages are covered unless clearly excluded.
Example:
If a tree falls on your garage during a storm, the damage is covered under an all-risk policy unless falling trees are specifically excluded.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.