What is the difference between 'named perils' and 'open perils' coverage?

These are the two main coverage approaches. Named perils policies list the specific causes of loss covered — anything not listed is not covered. Common named perils: fire, lightning, windstorm, hail, explosion, riot, vehicles, smoke, vandalism, theft, falling objects, weight of ice and snow, accidental discharge of water from plumbing, freezing, electrical surge. The HO-1 (Basic) covers about 11 perils; HO-2 (Broad) adds more. Open perils (also called 'all risks') covers any cause of loss unless it is specifically excluded — the policy lists exclusions rather than coverages. Open perils provides broader protection because unusual or unforeseen losses are covered if not excluded. The HO-3 has open perils on the dwelling, named perils on contents; the HO-5 has open perils on both. Open perils policies cost more but are usually worth it for the broader coverage.