What is a key feature of an open peril insurance policy?

An open peril insurance policy is designed to provide broad coverage by protecting against all types of risks or perils unless specifically excluded in the policy terms. This approach gives policyholders significant flexibility and reassurance, as it does not limit coverage to only certain perils, but instead broadly addresses many potential risks.

For instance, if a situation arises that causes damage to the insured property, and that damage does not fall into the list of specifically excluded perils outlined in the policy, the insurance company would cover the loss. This feature contrasts with policies that only cover explicitly listed perils, which could leave gaps in coverage and make it more challenging for policyholders to know what is and isn't covered.

The focus on covering all perils not expressly excluded makes open peril policies a preferred choice for those seeking comprehensive protection against unforeseen risks.