Open Peril

Homeowners insurance policies are written to address both "open perils" and "named perils," a "peril" being a cause of damage. An open peril covers all the potential causes for a loss on the insured property that are not specifically excluded from coverage in the insurance policy.

For instance if a home was damaged by Reason X and Reason X was not named specifically in the language of the policy as being excluded from consideration as an item of coverage, then Reason X would be covered by the policy.

Common open peril exclusions from homeowners policies include natural disasters such as earthquakes and flooding as well as man-made disasters including nuclear incidents, acts of war, and acts of terrorism.

Named perils must be specifically listed in the language of the policy for said peril to be covered by the policy's benefits. Typical named perils include incidents of fire, lightning, explosion, and theft.

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