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Simple English definitions for legal terms
open-perils policy
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A quick definition of open-perils policy:
An open-perils policy is a type of insurance policy that covers all risks except for those specifically excluded. This means that if something happens to your property that is not listed as an exclusion, you will be covered. It is important to read the policy carefully to understand what is and is not covered. Other types of insurance policies include basic-form policies, which offer limited coverage, and broad-form policies, which offer more coverage than basic-form but less than open-perils policies. Insurance premiums are the amount of money you pay for insurance coverage, and insurance rating is the process by which an insurer determines the premium for a particular risk. Insurance Services Office is a nonprofit organization that provides services and tools to the insurance industry.A more thorough explanation:
An open-perils policy is a type of property insurance policy that covers all risks of loss or damage to the insured property, except for those specifically excluded in the policy. This means that any damage or loss to the property that is not specifically excluded in the policy is covered.
For example, if a homeowner has an open-perils policy for their house, and a tree falls on the roof during a storm, the damage would be covered by the policy. However, if the policy specifically excludes damage caused by earthquakes, and an earthquake damages the house, the damage would not be covered.
Open-perils policies are also known as all-risk policies, and they provide broader coverage than other types of policies, such as named-perils policies, which only cover specific risks that are listed in the policy.