A standard renters insurance policy is written on a policy form that provides coverage for named perils. This means that your property is protected against specific perils, or causes of loss, that are named in the policy. Fire, theft, and vandalism are common examples. Some people prefer to be covered for more than these risks, so they opt for what’s called an “all risk” or “open perils” policy on their Allendale, NJ Renters Insurance.
That’s actually something of a misnomer. Those in the insurance business know what it means, but you’re buying insurance, not selling it, so let’s dig in a little further.
An open perils policy is endorsed to have language similar to “We insure against risk of direct physical loss to property covered by the policy.” That sounds broad, and it is, but there are exclusions named later in the policy. Open perils is great coverage if you have a low risk tolerance. But that doesn’t mean it covers every possible eventuality. Your property is covered against risk of direct physical loss unless that loss is caused by something later excluded from coverage.
The good news is, those exclusions often aren’t perils with significant risk. One excluded peril that some people do have a significant risk for is flood. Flood is not covered on renters or homeowners insurance of any kind. Flood insurance is a separate policy that you buy, often via the government’s National Flood Insurance Program. That’s not specific to open perils coverage or renters insurance in Allendale, it’s just a fact of personal insurance.
Earthquake and earth movement are also excluded, but can often be endorsed on. Since you’re not insuring the structure on a renters insurance policy, many people elect to go without the coverage. Neglect, as well as intentional acts, by the insured are also excluded. This makes sense, because the idea of renters insurance is to protect you against risks that you can’t control, not to protect you when you could have done something to prevent the loss or losses that you caused directly.
War and nuclear hazards are excluded. This is common to personal policies, though the risk is extremely low. Government action is also excluded, but remember that the government has insurance and/or settles claims if their action caused a loss. Again, since you’re not insuring the building, you’re at low risk from government action.
Mold is excluded, though there may be some coverage endorsed back on. The reason for this is quite simple. Mold is not “sudden and accidental.” In other words, if a mold problem gets so bad that it needs to be remediated at great expense and causes significant damage to your property, it’s generally because the mold has been left to grow and damage property for a long period of time. It’s the same idea as to why damage to property of the insured from animals owned by the insured is excluded – the insured likely could have prevented the damage, or at least drastically mitigated it. That’s not the sort of event that insurance is designed to cover.
Your open perils renters insurance policy may contain other exclusions, but these are some of the most common ones. This is not intended to be an exhaustive list of things that are not covered by a given policy. Generally, the exclusions discussed indicate things that are commonly not covered under open perils or named perils renters insurance.
Open perils coverage is still quite broad, and it’s often a good idea to have. To find out more, and to find out how little it costs to endorse your policy to open perils, just call (800)892-4308 or click to get covered - whether you need Allendale renters insurance quotes online or coverage anywhere else!
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