Open-perils policies cover which risks?

• A. Only named perils
• B. All risks except exclusions
• C. Only theft and vandalism
• D. Only structural components

Answer: (B)

Open-perils policies cover all causes of direct physical loss to insured property unless a specific exclusion applies. This means everything is covered by default, and only the risks explicitly named as exclusions would not be covered. That broad approach is what distinguishes them from named-peril policies, which list the exact perils that are covered. Common exclusions—like wear and tear, inherent defects, dampness, government actions, nuclear hazards, and, in many cases, floods or earthquakes unless added by endorsement—define the limits of the coverage. So the best answer reflects that coverage is “all risks except exclusions.”