When you secure homeowners insurance, you will have several coverage options to choose from. One of the decisions that you will have to make involves the type of peril coverage you secure.
What exactly are ‘perils’ and what can your policy do to protect against them?
What is a Peril?
A peril is anything that can cause damage to your home or personal possessions. The definition of a peril is purposely vague because there are countless things that could cause damage to your home.
What are My Policy Coverage Options?
When it comes to peril coverage, homeowners generally have two options: open peril coverage and named peril coverage.
- Open Peril Coverage – Policies that offer this type of coverage protect the homeowner from all perils unless they are specifically excluded from their policy. This type of coverage is also known as “all risks” coverage. Open peril policies exclude coverage for things like earthquakes, flooding, neglect, construction defects, and many issues with vacant buildings.
- Named Peril Coverage – This coverage is also known as “specified perils coverage.” This type of homeowners policy only offers coverage for the specific perils named in your policy. Anything not listed will not be covered. Generally, these policies offer coverage for perils such as fires, lightning strikes, windstorms, hail, vandalism, theft, falling objects, and so on.
Interested in learning more about your homeowners insurance coverage options? If so, contact the experts at John Scott Insurance. We are ready to assist you with all your personal coverage needs today.