Glossary
Open perils
Coverage that applies to any direct physical loss unless the policy specifically excludes the cause, so the insurer must point to an exclusion to deny a claim.
Also called: open peril coverage, all-risk, special form coverage
Open perils coverage, also called all-risk or special form coverage, protects against direct physical loss from any cause unless the policy excludes it. In most states the insurer, not the homeowner, has the burden of showing that an exclusion applies, which is why open perils is the broader of the two approaches.
On the standard HO-3, the dwelling and other structures are covered this way, while personal property is limited to named perils. The HO-5 form extends open perils to belongings as well. A dropped toolbox that cracks a bathtub, or a stray golf ball through a window, are the sort of unusual losses that an open perils policy picks up without any peril being listed.
"All-risk" is a misleading nickname. Every open perils policy carries a long list of exclusions: flood, earth movement, wear and tear, neglect, mold in many cases, intentional loss and others. A claim for a gradual leak or a settling foundation can be denied even though the coverage is called open. When a loss is excluded, there may be an exception that restores coverage for the resulting damage, so the exact wording counts.
Read the exclusions with the same care as the insuring agreement. Our named and open perils guide sets out the differences, and the exclusion entry explains how to read them.
Last reviewed October 10, 2026