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Homeowner Insurance: Defining ‘Named Perils’


Every homeowner insurance policy has different coverage. When choosing one of these policies, be sure to check into what is covered and what is not. The difference between an open perils policy and named perils policy are the damages covered in each policy. An open perils policy will have a broad spectrum of coverage for many different disasters and damages, while a named perils policy will have a list of what is covered under that policy. Each item that is named under that homeowner insurance policy will be covered. Some policies will allow you to name each item on the list, while others will have a list of the perils. For example, here are the 16 named perils covered under a HO-2 policy:

  1. Lightning or Fire
  2. Hail or Windstorm
  3. Damage caused by an aircraft
  4. Explosions
  5. Riots or Civil disturbances
  6. Smoke damage
  7. Damage caused by vehicles
  8. Theft
  9. Vandalism
  10. Falling objects
  11. Volcanic eruption
  12. Damage from the weight of snow, ice, or sleet
  13. Water damage from plumbing, heating, or air conditioning overflow
  14. Water heater cracking, tearing, and burning
  15. Damage from electrical current
  16. Pipe freezing

Remember, that earthquakes and floods are covered under their own policies and not covered by your homeowner insurance policy.


An HO-3 (open) policy covers everything named in an HO-2 homeowner insurance policy including all risk of physical loss except these items:

  1. Ordinance of Law
  2. Nuclear Hazard
  3. Water (Flood)
  4. Earth Movement (Earthquake)
  5. Power failure
  6. Inherent Defects
  7. Governmental Action
  8. War/ Military Action
  9. Vermin

 Which homeowner insurance policy is a better choice? If you are paying for a mortgage, it is likely that you will not have a choice. Most lenders will require that you have a comprehensive policy. If you are not paying for a mortgage, the type of homeowner insurance policy you get will be based on your needs and the type of property you want to protect. The advantage of having an all-risk policy is that it can protect you from unexpected losses. In this day and age, that would probably be a better choice so that you have a wider range of coverage. Make sure to keep flood and earthquake insurance in mind since they would not be covered under this homeowner insurance policy.


If you would like to see the full details regarding named perils and the different types of homeowner insurance, give us a call! We want you and your home to be covered for whatever accidents may occur.