Insurance policies document the coverage provided to clients, including specific events known as named perils and more general situations called open perils. Although many occurring events found in the two policies are similar, the specifics of coverage may differ. The insurance experts at Tri-Star Insurance San Diego are here to help you understand the differences between the two to help you decide which coverage you may need.
Perhaps the greatest difference between these events is the specificity of named perils. Examples include damage occurring due to natural acts such as fire, lightning, windstorm, hail, and smoke. In addition, named perils can include vandalism, theft, explosions, and smoke damage. Since these situations are so clearly spelled out in the policy, the cost of this coverage is generally lower. With a named perils policy, it is ultimately the responsibility of the property owner to prove one of the listed events actually caused the damage. If it is determined an event other than the ones listed caused the damage, the insurance company is typically not responsible for the necessary repairs.
Open perils generally cost more to cover. This is because they are much less specific regarding what is covered in the event any damage occurs. However, it is common to have specific exclusions within an open perils insurance policy. Since the insuring company takes a greater chance with the liability, it falls to them to prove any damage that occurred was a result of one of the excluded events. As these policies usually offer a greater amount of protection to the insured, they often come with a higher premium rate.
If you still have some questions about what type of coverage you may need for your home, our team of experts is here to help. For information on homeowners insurance San Diego clients can trust or to learn about affordable options for auto, motorcycle, or commercial insurance, call American Tri-Star Insurance at 619-272-2100.