What is a named perils vs all-risk policy?
Named perils policies cover only specific, listed hazards, while all-risk policies cover all damage except what's explicitly excluded; the two basic structures Ontario insurers use to define home coverage.
Home insurance in Ontario uses two distinct policy structures to define what the insurer will pay for if your house is damaged. A named perils policy lists specific covered risks, such as fire, theft, windstorm, vandalism, and falling trees. If your loss does not match one of those named events, the insurer will not cover it. An all-risk policy (often called "open perils" or "comprehensive") works the opposite way: it covers all damage that occurs except for specific exclusions written into the contract, such as flooding, earthquakes, or normal wear and tear.
Most Ontario homeowners purchase all-risk coverage for the dwelling structure itself because it offers broader protection with fewer gaps. Tenants and condo owners often find named perils policies on personal belongings, since the coverage is narrower and the premiums are lower. Insurance brokers in Ontario typically recommend all-risk for the building structure to avoid disputes about whether a particular cause of loss was named, but may pair it with named perils coverage for optional add-ons where the policyholder accepts the trade-off. Understanding which structure applies to each part of your policy is important: your home's walls and roof may be all-risk while your contents are named perils, or vice versa. The distinction directly affects what claims will be honored.