What is the difference between “named perils” and “all perils” and how does it impact my Florida homeowners policy?
Peril is defined as exposure to the risk of harm or loss. Your home and belongings face perils every day and homeowners insurance is designed to help protect you in case one of these perils comes to pass and you suffer harm or a loss.
Homeowners insurance policies may be written to cover named perils, all perils or a combination of both.
Open or All Peril Policy – Covers almost all perils that can cause damage to a property except certain exclusions that written into the policy.
Named Peril Policy – Specific perils are named against which the insurer provides coverage. If the property damages occur due to any other peril other than those mentioned in the policy, the insurers deny paying for the loss.
The three most common homeowner’s insurance policies are:
- (HO-2) – Typically covers 16 named perils on both the dwelling and its contents.
- (HO-3) – Is a combination policy that provides open peril coverage on the dwelling and named peril policy on contents similar to the H)-2 policy. This policy is more expensive than the HO-2 because it provides broader coverage on the dwelling.
- (HO-5) – This the most comprehensive policy and provides open peril coverage on the dwelling & its contents.
List of Named Perils for HO-2 & HO-3 Policies
- Fire or Lightning
- Falling Objects
- Volcanic Eruption
- Windstorm or Hail
- Riot or Civil Commotion
- Damage caused by Aircraft
- Vandalism or Malicious Mischief
- Damage due to weight of Ice, Snow, or Sleet
- Sudden & Accidental Tearing Apart, Cracking, Burning, or Bulging
- Sudden & Accidental Damage from Artificially Generated Electric Current
- Accidental Discharge or Overflow of Water from Plumbing, Air conditioning etc.
Common excluded perils on all homeowner insurance policies
- Power failure
- Industrial pollution or smoke
- Earth movement (earthquake)
- Water damage due to flood
- Intentional loss
- Nuclear Accidents
- Pets and other animals, insects and pests
- Settling, wear and tear
- Act of negligence
- Actions taken by government and other associations
- Legal action due to lack of proper permits, defective construction, design or maintenance
- Theft or Damage from vandalism in vacant dwellings or in dwellings under construction
- Deterioration due to weather conditions, that aggravates other excluded causes of loss