Open peril is an all-risk insurance, except for those specifically excluded in the policy. It provides broad and comprehensive protection for the insured property. Under this protection, the company is responsible for covering any loss or damage that occurs unless it is explicitly omitted.
Common exclusions in an open peril policy may include acts of war, intentional acts, nuclear hazards, government actions, and certain types of natural disasters. Each insurance policy may have its own specific exceptions, so it’s important for policyholders to review their documents to understand what risks are excluded from coverage.
Open peril policies are typically contrasted with named peril policies. These policies provide coverage only for the specific risks that are explicitly listed. If a loss or damage occurs due to a risk that is not named in the policy, it will generally not be covered.
Open peril policies are considered more comprehensive because they provide protection for a wide range of risks. However, they may be more expensive.
At PSIC, our open peril policy is called DP3 or Special Dwelling insurance. It is ideal for those who rent out properties or have vacation homes. It offers comprehensive protection against common risks, ensuring that your investment is safeguarded.
This policy operates on an open peril basis, meaning it covers a wide range of potential risks unless specifically excluded. Whether you are a new landlord or have experience, having this coverage provides peace of mind.
These terms might be similar or associated with the term you have read before.
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DP3 Insurance, also known as Special Dwelling Insurance or Open Peril Insurance, is a protective buffer for your rented, primary owner occupied or seasonal property. It’s specifically designed to keep your home and assets safe with an open peril policy, covering a wide scope of potential risks, with a few exceptions.
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