What to compare
Named-peril wording starts with a list of covered causes of loss. Open-peril wording generally starts more broadly and then removes exclusions. The distinction must be checked separately for the dwelling and personal property.
- Which coverage section uses named-peril or open-peril wording
- The actual peril list, exclusions, limitations, and anti-concurrent-causation language
- Whether endorsements add, remove, or redefine a cause of loss
- How proof and claim investigation can differ under the form
- Whether settlement is replacement cost, actual cash value, or another method
Questions that need a written answer
| Question | What to verify |
|---|---|
| Is an HO-3 open peril everywhere? | Do not generalize: the dwelling and contents sections can use different approaches, and endorsements can change them. |
| Does open peril mean every event? | No. Exclusions, conditions, limits, and deductibles still apply. |
| Is a listed peril automatically payable? | The loss must also satisfy the policy's definitions, conditions, and coverage requirements. |
| Where is the answer? | Use the offered policy form, cause-of-loss section, exclusions, and endorsement list. |
Records to keep with the quote
- Full sample or specimen policy form
- Quote forms-and-endorsements schedule
- Declarations showing covered property and deductibles
- Written carrier answer for the specific cause of loss being compared
Important boundary: Marketing labels are not a substitute for reading the cause-of-loss and exclusion language attached to the quote.