What Is Peril (Open vs Named)?
Open-peril (all-risk) and named-peril describe how a property policy decides coverage. A named-peril policy covers only the causes it lists (fire, wind, theft); an open-peril policy covers all causes except those it specifically excludes (flood, earthquake, neglect). Open-peril is broader and usually costs more.
Why it matters
The structure decides who must prove what after a loss: under named-peril you prove the event is listed; under open-peril the insurer must prove an exclusion applies.
Common confusion
Neither form covers flood or earthquake without separate policies — those are standard exclusions in both.
Frequently Asked Questions
Which should a homeowner pick?
Open-peril (special form) is broader and preferred by most owners who want fewer gaps, at a higher premium.
Is "all-risk" truly all risk?
No — it means all unless excluded. Exclusions like flood, earthquake, and wear-and-tear still apply.