Home & Property

Open Perils (All Risk)

A coverage approach where all causes of loss are covered unless explicitly excluded in the policy.

Last reviewed: May 2026 · Editorial methodology

Definition

Open-perils coverage — sometimes called all-risk or special-form coverage — inverts the named-perils approach: instead of listing what is covered, the policy lists what is not covered, and everything else is insured. Common exclusions include flood, earthquake, earth movement, nuclear hazard, wear and tear, and intentional acts. The insurer bears the burden of proving an exclusion applies when it denies a claim under an open-perils form, which is more favorable to the policyholder than under named-perils forms. The HO-3 uses open perils for the dwelling (Coverage A and B), while the HO-5 extends open perils to personal property as well. Open-perils forms typically cost 10–20% more than comparable named-perils forms, reflecting the broader scope of coverage. Policyholders should read the exclusions section carefully — the breadth of open-perils coverage is ultimately determined by what has been carved out.

Where this term matters

Home Insurance →Landlord Insurance →/states →

Tip

Glossary definitions are educational. Always check your own policy language — insurers can define common terms differently from one another. When in doubt, request a written explanation from your agent.

Related terms

Named PerilsA coverage approach where only the specific causes of loss listed in the policy are covered.PerilA specific cause of loss — such as fire, windstorm, or theft — that triggers an insurance claim when it damages covered property.HO-3 PolicyThe most common homeowners insurance form, providing open-perils coverage on the dwelling and named-perils coverage on personal property.HO-5 PolicyA premium homeowners form that extends open-perils coverage to both the dwelling and personal property.DP-3 (Dwelling Fire Special Form)The broadest dwelling policy form, providing open-perils coverage on the structure and named-perils coverage on personal property.Flood ExclusionA universal homeowners policy exclusion barring coverage for damage caused by rising surface water, storm surge, and overflow from water bodies.

Related guides

Source: Cover Forge USA editorial team|Last verified: May 2026|Methodology
Definitions are educational and may be simplified. Always refer to your policy contract and consult a licensed agent for terms that affect coverage decisions.
CF

Cover Forge USA Editorial Team

Editorial Lead

This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.

Reviewed June 2026

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