Homeowners insurance is designed to protect a policyholder’s house and the possessions in it from damages. The potential causes of damage that policies provide coverage for, however, can vary a lot. To find out what hazards your home insurance protects your Richmond, VT house from, you’ll need to find out whether it’s a named perils or open perils policy.

Homeowners Insurance Richmond, VT

An Open Perils Homeowners Insurance Policy May Help Protect Your Richmond, VT Home from All Kinds of Perils

A “Peril” is a Potential Risk

In insurance parlance, “peril” is a technical term that’s generally used to refer to a potential risk. Fire, floods, windstorms, vandalism, and theft are all examples of different perils.

(Definitions can differ slightly from one policy to another. Read your policy’s definitions page to find out exactly how it defines peril).

Named Perils Homeowners Insurance Policies Protect Against Specific Hazards

99% of the time, a named perils homeowners insurance policy will protect the insured house against the perils identified within the policy — and only against those perils. If you have a named perils policy, it will typically list each and every peril that your Richmond, VT home is insured against.

Most named perils home insurance policies offer coverage for a group of perils, but how many perils are included in the group varies. Some only cover a basic group of perils, such as fire, lightning, malicious mischief, and vandalism. Others offer coverage for an extended group of perils, which might include smoke, hail, windstorms, explosions, some damage caused by vehicles, riots and civil commotion, and aircraft. Still others provide coverage for a broad group of perils that may include everything from snow, sleet, ice and freezing pipes – to volcanic eruptions (which most Vermont homeowners are a bit less concerned about).

Homeowners Insurance Richmond, VT

In almost all cases, even a named perils policy that insures against a broad group of perils, however, only protects against those perils. If a peril isn’t listed in a named perils policy, it likely won’t be covered.

Open Perils Policies Protect Vermont Homes from Many Hazards

Open perils home insurance policies generally provide more robust protection than even named insurance peril policies that cover lots of perils. Instead of listing the perils covered, open perils policies will nearly always only list perils that are not covered. The perils that aren’t covered are mentioned as exclusions — and all other perils are usually covered. Often, the excluded coverages are floods, wars, and nuclear accidents.

If you have an open perils home insurance policy, it will likely insure your Vermont home against anything that’s not specifically mentioned as an exclusion.

Have an Insurance Agent Check your Richmond, VT Home’s Policy

Whether you have a named or open perils homeowners insurance policy will be stated in your policy’s paperwork. Sometimes, though, wading through all of a policy’s papers can be challenging if you aren’t used to all of the industry jargon. For help determining whether you have a named or open perils policy, consider contacting an independent insurance agent who serves Richmond, Vermont. An agent will be able to help you review your home insurance policy. They can also help you get an open perils policy if you have a named perils one and want more comprehensive coverage.