In an open perils policy, losses are covered from which of the following?

In an open perils policy, losses are covered from which of the following?

• A. Perils listed by name only
• B. Any peril except those excluded
• C. Only natural disasters
• D. Only perils that cause fire

Answer: (B)

Open perils, or all-risk, coverage means you’re protected for losses from essentially any cause, as long as the peril isn’t specifically excluded by the policy. That’s why the best description is “any peril except those excluded.” The other options describe different types of coverage: naming only perils covered, coverage limited to natural disasters, or coverage limited to fire—none of which capture the broad, all-encompassing nature of an open perils policy.

Open perils, or all-risk, coverage means you’re protected for losses from essentially any cause, as long as the peril isn’t specifically excluded by the policy. That’s why the best description is “any peril except those excluded.” The other options describe different types of coverage: naming only perils covered, coverage limited to natural disasters, or coverage limited to fire—none of which capture the broad, all-encompassing nature of an open perils policy.