What Is AOP (All Other Perils) in Insurance?

“All Other Perils” (AOP) refers to a broad type of coverage in property insurance policies. This term indicates a comprehensive approach to protecting assets, such as a home, against various potential sources of damage or loss. It establishes a wide scope of protection, differing significantly from policies that itemize every covered event.

Understanding “All Other Perils”

“All Other Perils” coverage, often referred to as “open perils,” “all-risk,” or “special perils” coverage, provides protection for any cause of loss unless it is specifically listed as an exclusion within the insurance policy. The nature of this coverage shifts the responsibility of proving a loss is not covered to the insurance company. They must demonstrate that an exclusion applies to deny a claim.

This contrasts with other policy types where the policyholder must prove their loss resulted from a specifically listed event. Under an AOP policy, the policyholder only needs to show that a direct physical loss occurred while the policy was active. Once this is established, the insurer then bears the burden of proving that an exclusion clause in the policy applies to the specific damage.

Common Inclusions and Exclusions

AOP policies generally cover a wide array of common incidents that can lead to property damage. These typically include events such as fire, lightning, and explosion. Damage from windstorms, hail, theft, and vandalism are also frequently covered. Additionally, perils like the weight of ice, snow, or sleet, accidental water overflow from plumbing or appliances, and falling objects are usually included.

Despite their comprehensive nature, “All Other Perils” policies contain specific exclusions. Standard exclusions almost always include flood damage, earth movement (such as earthquakes, landslides, and sinkholes), and damage from war or nuclear hazard. Other common exclusions can involve mold, fungus, or rot unless directly caused by a covered peril, and damage resulting from neglect or normal wear and tear. These exclusions are clearly detailed within the policy language, and separate policies or endorsements are often available to cover some of these excluded events, such as flood insurance.

How AOP Differs from Named Perils

“All Other Perils” coverage differs from “named perils” coverage in its scope and the allocation of the burden of proof. Named perils policies explicitly list the specific events or risks for which coverage is provided. If a loss occurs due to an event not on that predefined list, the policy does not offer protection.

In a named perils policy, the policyholder is responsible for proving that the damage or loss resulted directly from one of the perils specifically named in their policy. Conversely, with AOP coverage, the policyholder only needs to demonstrate that a loss occurred. The responsibility then shifts to the insurer to prove that the cause of the loss is specifically excluded by the policy. This distinction means that AOP policies offer a more expansive form of protection, as they cover any damage not explicitly excluded, rather than only those explicitly included.