If you’ve ever stared at your insurance policy and thought, “Wait, what exactly am I covered for?” – you are not alone. One of the biggest (and most important!) distinctions in property insurance is whether your policy is a named peril or an open peril policy.

Let’s break it down, plain and simple, so you know exactly what kind of coverage you have – and what type you might want.

With a named peril policy, your insurance only covers events that are specifically listed in the policy form. If it’s not named? It’s not covered. Think of it like an exclusive guest list – only the perils with VIP access are allowed in.

Named peril policies are generally divided into two types: Basic and Broad.

• Fire
• Lightning
• Windstorms or hail
• Explosions
• Smoke damage
• Damage caused by aircraft or vehicles
• Riots or civil unrest
• Vandalism or malicious mischief
• Sprinkler leakage
• Sinkhole collapse
• Volcanic action (yes, really!)

If your loss isn’t caused by one of the events on this list, it’s not covered under a basic policy. Simple as that.

A broad form named peril policy takes everything in the basic list and adds a few extra layers of protection, specifically for property owners. These typically include:

• Theft or attempted burglary
• Falling objects (looking at you, tree branches)
• Weight of ice or snow
• Frozen or burst plumbing
• Accidental discharge or overflow of water/steam
• Sudden damage from electrical current (excluding damage to wiring itself)

Still, remember – it’s only what’s named that’s covered. So, if it’s not on the list, your claim may be denied.

Unlike its more exclusive cousin, an open peril policy works the other way around. Instead of listing what’s covered, it covers everything – unless it’s specifically excluded.

These are often called “all-risk” policies (though let’s be real – nothing is truly “all-risk”). Open peril policies typically cover a much wider range of potential issues, including oddball accidents you never even considered.

• Earthquakes
• Floods
• Wear and tear or neglect
• War or nuclear hazards (hopefully never relevant)
• Government actions
• Mold or fungus (unless specified)

So, while you may get broader coverage with an open peril policy, always – always – read the exclusions list carefully.

Feature	Named Peril	Open Peril
Coverage	Only what’s listed	Everything except what’s excluded
Cost	Generally more affordable	Usually more expensive
Transparency	Easier to understand	More comprehensive, but exclusions can be tricky
Risk	Higher chance of a denied claim	Lower risk, but higher premium

Tip: Basic vs. broad coverage can also vary from one insurance carrier to another. Always compare options, and don’t be afraid to ask questions.

Understanding the difference between named peril vs open peril coverage could be the key to saving thousands of dollars, or ensuring you are not left without coverage when it matters most.

If you are unsure what kind of policy you have or if your current coverage fits your situation, reach out – we’ll be happy to assist you! At Perfect California Insurance, we help homeowners and property investors find policies that actually protect their homes – not just look good on paper.