You may have heard the term "named perils" when going over your property insurance policy(s), but do you know what it means?
Named Perils (Named Perils Coverage), Also known as a Broad Form/HO-3 is a property insurance term referring to policies that provide coverage only for losses caused by the Perils specifically listed, such as fire, wind, hail, etc. The other type of policy coverage is known as All Risk/Open Perils coverage, also known as Special Form/HO-5. All Risk Coverage covers losses from all causes on a policy unless it is specifically excluded, such as home maintenance, unusual hazards,etc.
Coverage on your contents is on a Named Perils basis under a standard HO-3 policy, However, the HO-5 policy also provides the Open Perils coverage on contents, which can make it a better policy if available.
There is a price difference between the Named Perils and Open Perils policies, as you can imagine. However, most companies now provide endorsements to add on to a Named Perils policy to provide "All Risk" coverage on certain contents.
Follow up with your agent, or give us a call to review your policy and ensure that you have the right coverage to fit your needs.
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