All-Perils Policy
A homeowner's insurance policy that covers all causes of loss except those specifically listed as exclusions. Also called an open-perils or special form policy. Broader coverage than a named-peril policy.
What Is an All-Perils Policy
An all-perils policy, also called an open-perils or special form policy, covers all causes of loss to the insured property unless the cause is specifically listed in the policy's exclusion section, providing the broadest standard coverage available for residential properties. The most common form is the HO-3, which provides all-perils coverage for the dwelling structure (Coverage A) and named-peril coverage for personal property (Coverage C).
All-Perils vs. Named-Peril
The distinction matters because it determines who has the burden of proof. On an all-perils policy, the carrier must prove the cause of loss is excluded to deny the claim. On a named-peril policy, the policyholder must prove the cause of loss is one of the named perils listed in the policy. For roof claims, this difference is significant. Under an all-perils policy, if the roof is damaged and the carrier wants to deny, they must point to a specific exclusion. Under a named-peril policy, the homeowner must prove the damage was caused by a specifically listed peril.
Why It Matters for Contractors
When reviewing a homeowner's policy before scoping a claim, check whether the dwelling coverage is all-perils or named-peril. All-perils coverage creates a stronger starting position for the claim because the default is coverage, not exclusion. If the carrier denies a claim on an all-perils policy, ask which specific exclusion they are citing. The denial must reference a policy exclusion to be valid. This shifts the dynamic from proving the damage is covered to challenging whether the cited exclusion actually applies.
Frequently asked questions
An all-perils policy covers damage from any cause unless that cause is specifically listed as an exclusion in the policy. This is the opposite of a named-peril policy, which only covers causes that are specifically listed. The standard HO-3 homeowner's policy provides all-perils coverage for the dwelling structure.
Common exclusions on an all-perils policy include flood, earthquake, nuclear hazard, war, intentional loss, ordinance or law (unless endorsed), and wear and tear. The exclusion list is typically shorter than the coverage list on a named-peril policy.
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