What does an open perils policy cover?

An open perils policy, also known as an all-risks policy, provides coverage for all losses except those that are specifically excluded in the policy. This means that unless a peril is named as excluded, it is assumed to be covered. This type of policy is beneficial to policyholders because it offers a broader scope of protection compared to named perils policies, which only cover losses arising from perils that are explicitly stated in the policy.

By excluding certain risks, the insurer can limit its liability, while the policyholder enjoys a more extensive level of coverage that helps protect against a wide range of potential loss scenarios. The clarity and comprehensive nature of open perils policies make them a popular choice for individuals seeking to mitigate various risks associated with their property or belongings.