What is the characteristic of open peril in insurance?

Open peril coverage, often referred to in insurance terminology as "all risks" coverage, is characterized by its broad scope. This type of coverage includes protection against any risk of loss not specifically excluded in the policy. This means that unless a peril is explicitly mentioned as excluded, the insured is generally covered for a wide range of potential risks.

For instance, if you have an open peril policy on your home, you would be covered for damages resulting from fire, theft, vandalism, or natural disasters, as long as those specific risks are not listed as exclusions in the policy document. This characteristic makes open peril coverage more comprehensive compared to named peril coverage, which only protects against the risks that are specifically listed.

In this context, options referring to coverage limited to certain named perils, subject to specific limits, or only covering physical damages do not align with the definition of open peril, as they provide more restricted or narrower coverage than what is characteristic of an open peril approach.