If you have ever heard someone say they have all risk insurance and wondered whether that means everything is covered, the short answer is: not quite. In property insurance, all risk (also called open perils) means your policy covers any direct physical loss to covered property unless the cause of loss is specifically excluded. That is very different from a named perils policy, which only covers the causes of loss listed by name.

As a Florida attorney who spends most days inside residential insurance policies and claim files, I will translate the jargon, point out the traps we see after hurricanes and water losses, and help you decide when open perils coverage makes sense for your home.

All Risk Insurance Definition – Understanding All Risk Coverage

All risk is a promise by exclusion: if a peril is not on the exclusions page, it is in. Practically, that means you do not have to prove which covered peril caused the damage. You must show that you suffered a physical loss to covered property during the policy period. Then the burden shifts to the insurer to show that an exclusion applies. This burden of proof dynamic matters in close calls such as roof leaks after a wind event or a hidden pipe burst versus long term seepage.

In the homeowners world, open perils coverage typically attaches to the dwelling and other structures under an HO 3 or HO 5 form. HO 3 is the most common: dwelling equals open perils, personal property equals named perils unless you endorse it to be broader. HO 5 is often open perils for both dwelling and contents and tends to include more generous sublimits and fewer disputes about depreciation for personal property.

The Scope of Coverage

All risk coverage applies to direct, sudden, and accidental physical losses unless excluded. Typical covered scenarios include:

• Wind tearing shingles that allows rain to enter and damage the interior
• A sudden supply line burst destroying floors and cabinetry
• A tree falling on your roof during a storm

But scope is not only about perils. It is also about valuation and policy conditions. Important moving parts include:

• Replacement Cost versus Actual Cash Value for contents
• Roof surfacing schedules in some Florida policies that depreciate older roofs even on replacement cost forms
• Ordinance or Law coverage that pays the code upgrade difference
• Special deductibles for hurricane or wind and water damage sublimits
• Duties after loss such as mitigation, prompt notice, and documentation

What Is All Risk Insurance? How Does It Differ from Other Policies?

The easiest way to remember the difference:

Open perils, also called all risk: Everything is covered except what is excluded. You prove that a physical loss happened. The insurer must prove an exclusion to deny the claim.

Named perils: Only listed hazards are covered such as fire, lightning, theft, and similar causes. You must prove that a listed peril caused the loss.

Disputes often turn on causation labels such as wear and tear versus sudden break. This allocation of proof can be decisive in Florida claims where facts are messy. After a hurricane, wind and rain interact with pre existing conditions. Open perils forms tend to reduce the label fight, shifting focus to whether an exclusion such as flood applies.

Common Exclusions

All risk does not mean all things. Common exclusions include:

• Flood and storm surge which require a separate flood policy
• Earth movement including sinkhole unless endorsed
• Wear and tear, deterioration, rot, and rust
• Long term seepage or repeated leakage often defined by a day count
• Mold which is commonly limited by tight sublimits
• Neglect, meaning failure to mitigate further damage
• Intentional loss, governmental action, and ordinance unless endorsed
• Pollution and nuclear hazard

Moreover, Florida homeowners need to be mindful of the following:

• Hurricane and windstorm deductibles which are often a percentage of Coverage A and may apply per hurricane season or per event as defined in your policy.
• Anti concurrent causation clauses which can allow an exclusion to control if an excluded and a covered peril both contribute to the loss.
• Roof coverage limitations such as age based depreciation, cosmetic damage carve outs, or material restrictions that are appearing more often in coastal counties

Benefits of All Risk Insurance

Why homeowners in Florida often prefer open perils on the dwelling:

• Broader safety net: Captures unusual and unforeseen causes unless excluded.
• Easier claims posture: You show physical loss and the carrier must prove an exclusion.
• Fewer label fights: Reduces denial opportunities based on causation hair splitting.
• Better alignment with volatile weather in Florida: When wind, water, and debris interact, broader forms help.

Upgradeable for contents: You can often endorse contents to replacement cost and convert to open perils similar to HO 5 treatment.

Potential Risks and Drawbacks

Open perils is not a silver bullet. For example:

• Higher premium: You pay for broader protection.
• Exclusions still control: Flood remains excluded without a separate policy, and earth movement requires endorsements.
• Deductible surprises: Percentage hurricane deductibles create large out of pocket costs on big claims.
• Fine print hazards: Roof depreciation tables, cosmetic damage carve outs, and water damage day count definitions matter.
• Proof of physical loss: You still must establish direct physical damage. A pure loss of use without physical damage may not trigger coverage.

All Risk Insurance Definition, Florida Focused Deep Dive

This section doubles down on definition because in Florida the details are where claims are won or lost.

• Dwelling versus Personal Property: HO 3 gives open perils on the home but named perils for contents unless you endorse the policy to broaden contents. If your household has high value electronics, musical instruments, or collections, consider scheduling items and endorsing broader contents coverage.
• Hurricane versus flood: Wind driven rain that enters through a wind damaged opening often falls under the homeowners policy. Storm surge and flood do not. In mixed events, adjusters will review water lines, debris patterns, and meteorological data. Do not rely on memory. Photograph everything early.
• Water losses: Most policies cover sudden and accidental discharge such as a burst pipe but limit or exclude long term seepage often defined as leakage over a threshold number of days. Smart mitigation such as shutting off water, documenting moisture readings, and retaining the broken component can be the difference between paid and denied.
• Ordinance or Law: The building codes of Florida are stringent, especially after storms. Without adequate Ordinance or Law limits, often ten percent by default but higher is usually available, code required upgrades such as strapping, elevation, or electrical work can come out of pocket.
• Roof claims: Many Florida policies now use age based or material based roof provisions. A twenty year old shingle roof may be settled on actual cash value even when the rest of the home is settled on replacement cost. Review your declarations for roof specific terms before storm season.

Practical Checklist: Deciding if All Risk (Open Perils) Is Right for You

Location risk: Within wind borne debris regions or coastal counties. Open perils for the dwelling is typically advisable. You likely will want to pair this with flood insurance.

Home profile: Newer construction, hurricane clips, impact windows, and modern electrical and plumbing systems can lead to more favorable pricing for open perils.

Budget versus risk tolerance: If a higher premium today avoids six figures of out of pocket expense later, the math often favors open perils.

Deductible strategy: Treat your hurricane deductible as part of your emergency fund. Do not set it higher than you could write a check for tomorrow.

Endorsement plan: Add Replacement Cost on contents, Water Backup, Equipment Breakdown, and adequate Ordinance or Law. Schedule valuables above sublimits.

Documentation habits: Maintain pre loss photos of the interior and of the roof, keep big ticket receipts, and save contractor maintenance or inspection records.

Claims Tips Under an All Risk, Open Perils Form

• Act fast: Prompt notice and mitigation such as tarping, dry out, and shutoff are policy duties.
• Prove physical loss: Use photos and video, moisture mapping, and a simple room by room inventory.
• Nail down the mechanism: Contractor reports that clearly explain how damage occurred can short circuit wear and tear denials.
• Track expenses: Save Additional Living Expense receipts, emergency repair invoices, and mileage related to displacement.
• Mind the deductible: Clarify whether your claim will trigger the hurricane deductible or the standard all other perils deductible.
• Escalate wisely: If causation is disputed or an exclusion is asserted, consider looping in counsel early. The burden to prove an exclusion sits with the carrier, but you must present a clean file.

The Bottom Line: Why All Risk Insurance Matters

Open perils, often called all risk, means your homeowners policy covers any direct physical loss to covered property unless the policy expressly excludes that cause of loss. Compared with a named perils policy, it provides broader protection and better matches the highly variable weather in Florida. Under an open perils form, your job is to show that a physical loss occurred during the policy period; if the insurer wants to deny coverage, it must prove that a specific exclusion applies. Exclusions still matter, including flood and storm surge, earth movement such as sinkhole, long term seepage or repeated leakage, wear and tear, and limits on mold. Because standard homeowners policies exclude flood, pair your homeowners policy with a separate flood policy in Florida.

Pay close attention to Florida hot spots such as percentage based hurricane deductibles, roof coverage limitations tied to age or material, and anti concurrent causation clauses that can bar coverage when excluded and covered causes contribute to the same loss. Strengthen your policy with targeted endorsements, including replacement cost on personal property, ordinance or law for code upgrades, water backup, equipment breakdown, and scheduled coverage for high value items. Finally, keep a claims ready file throughout the year: pre loss photographs of the home and roof, receipts and serial numbers for major purchases, maintenance and inspection records, and a simple home inventory.

Final Thoughts

If you live in Florida homes and weather, an all-risk policy is usually the smarter baseline. It reflects that most losses here are sudden and driven by wind or water. These losses rarely fit into a small list of named hazards. From that baseline, close predictable gaps. This prevents a common event from becoming an uncovered expense. Pair your homeowners policy with separate flood insurance. Increase Ordinance or Law limits to meet building code after a loss. Add Water Backup to cover drain or sump issues. Upgrade your contents to Replacement Cost instead of Actual Cash Value. Schedule high-value items that exceed policy sublimits. Consider extra options like Equipment Breakdown. Add service line coverage for buried utility lines on your lot.

Right size deductibles to what you can actually fund on short notice. In Florida that usually means carrying a percentage based hurricane deductible that you have consciously built into your emergency fund, while keeping the all other perils deductible at a level that does not encourage small claims but would not derail repairs. Review roof specific language, including any age based or material based limitations, and ask about available buy backs or endorsements that can soften depreciation on older roofs. Premium is important, but the real goal is to choose limits and deductibles that you can live with on the worst day of the year.

Risk mitigation can make the math work in your favor. A wind mitigation inspection, impact rated openings or shutters, a secondary water shutoff device with leak sensors, trimmed trees, and documented maintenance on plumbing and roof components can reduce the likelihood of loss and may qualify you for credits that offset the cost of broader coverage. Maintain a claims ready file year round with pre loss photos of the roof and interior, receipts and serial numbers for major purchases, maintenance and inspection records, and a simple room by room inventory. Good documentation shortens disputes and speeds payment.

If you are weighing options or are already in a claim dispute, The Hernandez Legal Group can review your declarations, endorsements, adjuster estimates, and any contractor or engineering reports and provide a Florida specific roadmap that matches your home, your budget, and the current market for coverage.

This article is general information and not legal advice. Policies and endorsements vary by insurer and jurisdiction. For a Florida specific review or for help with a denied or underpaid claim, consider a consultation with an experienced attorney or licensed insurance professional.

© 2025 The Hernandez Legal Group wrote and published this article. All rights reserved.