What in the World is “Named Peril” vs “All Risk”?

What is a Named Perils Policy?

In the insurance industry, a named peril is a term used to describe a particular type of cause of loss that is a covered “named peril” in your policy.  In insurance, what does a named peril mean? Typically, covered causes of loss for named perils are one of  these 16 events:

  1. Fire or lightning
  2. Windstorm or hail
  3. Explosion
  4. Riot or civil commotion
  5. Aircraft
  6. Vehicles
  7. Smoke
  8. Vandalism
  9. Theft
  10. Volcanic eruption
  11. Falling object
  12. Weight of ice, snow, or sleet
  13. Accidental water overflow or steam
  14. Sudden and accidental tearing apart, cracking, burning, or bulging of certain household systems
  15. Freezing
  16. Sudden and accidental damage from artificially generated electrical current

What is an All Risk or Open Peril Policy?

An all risk or open peril policy covers everything except what is specifically excluded in the policy. An all risk or open peril policy is the superior coverage form.

What are Common Exclusions?

Every insurance policy has exclusions. The most important thing you can do is have a conversation with your experienced, local independent insurance agent to determine your specific coverage needs. Below is a list of common exclusions under most property insurance policies.

Earthquake or Flood | Generally, traditional homeowners insurance does not compensate for damage caused directly by either flooding or earthquakes. We would like to assume that these are rare events, but as we have seen, the effect can be financially damaging.

Wear and Tear | Generally, the intent of an insurance policy is to protect against losses that are “sudden and accidental.” Most policies do not provide coverage when an item wears out due to age and simply needs to be replaced.

Again, the most important thing you can do is have a conversation with your experienced, local independent insurance agent to determine your specific coverage needs and to understand your policy exclusions.

 

Questions? Want to learn more? Here’s 4 easy ways to reach us:

Phone: 877-994-6787
Email: insure@siaonline.com
Text: 951-482-8144
Web: www.siaonline.com

PS Here’s a few words from one client that trusts Stromsoe Insurance Agency:

“I have been dealing with Erica Gates for almost 8 years now. She has helped me with my house insurance, car insurance adding my wedding ring to my home owners insurance and now with my earthquake insurance. Erica does what she says she’s going to do, whether it’s check on something for you or return your phone calls. She has been “OUTSTANDING” since day one. You just don’t find people like Erica everyday. Her customer service has been above and beyond. A real keeper. Thanks Erica for all that you do.”
Norma Gold – Winchester, CA – Client Since 2010

PPS Every policy is backed by our iron clad, 100% complete satisfaction guarantee. Ask for your copy today!