Basics · A cause of loss, not a promise
A peril is the cause of the loss: fire, wind, theft, a crash. A hazard is what makes that loss more likely. Open-peril wording still excludes flood.
Named-peril coverage pays only for the causes the form lists. Open-peril, sometimes called all-risk, pays for sudden causes unless the form excludes them. An HO-3 is usually open-peril on the dwelling and named-peril on contents. An HO-5, or an endorsement, opens the contents. Flood is excluded on both. Earthquake and earth movement are usually excluded too. If shaking cracks the wall and a fire starts afterward, the fire may still be a covered peril. The shaking damage is not. That split is in the form, not in the word “peril.”
The named-versus-open split: named perils versus open perils. What the Texas form usually includes: what homeowners covers and the Texas homeowners hub. Hail on the house versus the car: which policy pays. Coastal wind: what TWIA is. The car side: Texas auto.
