What Is an All Other Perils (AOP) Deductible in Homeowners Insurance?

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  • What Is an All Other Perils (AOP) Deductible in Homeowners Insurance?

You might know that your homeowners insurance deductible is the amount of money you have to pay before your insurance kicks in to pay the rest of a claim, but did you know some policies have more than one kind of deductible? One of those – the one that applies most often – is called an all other perils deductible, or AOP deductible for short. 

Get the answers to all your questions about your AOP deductible so you know exactly how much you’re expected to pay when you make a homeowners insurance claim

What Is an All Other Perils (AOP) Deductible?

An AOP deductible is the standard deductible on your homeowners insurance policy. It’s usually a flat rate ranging somewhere between $500 and $5,000. You get to choose your own deductible based on how much you think you would be able to pay out of pocket if something happened to your home. The higher you set your deductible, the lower your premiums will be, and vice versa. 

In most cases, you’ll have to pay the AOP deductible when you file an approved claim with your insurance company. But your policy may include other deductibles that you would pay instead of the AOP deductible in certain scenarios. Special deductibles usually apply to certain severe weather events common in your area. 

Some of the most common special deductibles are:

  • Hurricane deductible: Applies when a hurricane damages your home
  • Named storm deductible: Applies when any storm that has a “name” damages your home (may be different from a hurricane)
  • Wind deductible: Applies when wind causes damage to your home 
  • Wind and hail deductible: Applies when wind or hail cause damage to your home 

Depending on what kind of severe storms are common where you live, your homeowners insurance policy might include one or more of these special deductibles, or it might not have any. For example, because Florida gets hurricanes frequently, homeowners policies in Florida almost always include a hurricane deductible. On the other hand, homeowners living in Tornado Alley should expect to see a wind and hail deductible on their insurance. 

Special deductibles like these are usually expressed as a percentage of your dwelling coverage amount ranging from 1% to 10%, but they can sometimes be expressed as a flat rate like the AOP deductible instead. 

What Perils Are Covered by Homeowners Insurance?

The “all” in all other perils can be misleading because it doesn’t mean literally all the things that could happen to your home. What it actually means is all other perils that are covered by your insurance. Covered perils vary from policy to policy, but the most common perils covered by homeowners insurance are:

  1. Windstorms or hail, such as a hurricane or tornado
  2. Fire or lightning
  3. Damage from smoke
  4. Damage due to snow, ice, or sleet
  5. Volcanic eruptions
  6. Theft
  7. Vandalism
  8. Frozen pipes
  9. Damage caused by vehicles
  10. Damage caused by aircraft
  11. Rioting or civil disturbances
  12. Damage caused by heating, air conditioning, or plumbing
  13. Damage from water heater, including cracks, burns, or tears
  14. Damage from electrical current, such as downed powerlines
  15. Explosions
  16. Falling objects

Check your specific policy to find out which of these perils your insurance covers. 

When Does an All Other Perils Deductible Apply?

As its name suggests, the all other perils deductible applies in the event of all covered perils other than those that have their own individual deductible in your policy. 

For example, let’s say you have a homeowners insurance policy that looks like this:

  • Standard deductible (aka AOP deductible): $1,000 flat rate
  • Hurricane deductible: 2% of your dwelling coverage
  • Wind and hail deductible: 1% of your dwelling coverage
  • Dwelling coverage: $200,000 

If a hurricane comes to town and rips off your roof, and you file a claim with your insurance, you’ll have to pay $4,000 (which is 2% of $200,000) for the repairs before your insurance will kick in. 

If your roof is ravaged by hail instead, you would have to pay $2,000 (which is 1% of $200,000) out of pocket, and your insurance would pay the rest of the cost of fixing your roof, up to $200,000. 

For any other kind of claim – whether it’s a fire, a robbery, an exploded water heater, or any of the other perils covered by your policy – you’ll only have to pay $1,000 (your AOP deductible), and your insurance will take care of the rest. 

All Other Perils vs. All Perils 

In insurance, “all other perils” and “all perils” refer to two completely different things. It’s easy to confuse the two phrases because they sound so similar, but one little word makes a big difference here. 

As we’ve covered in this article, all other perils is a type of deductible on a homeowners insurance policy that’s basically the standard deductible. 

But all perils insurance refers to a type of insurance policy. Also known as an all-risk or open peril policy, this type of insurance covers your home in any event except the ones specifically excluded from your policy, as opposed to listing finite perils you’re covered for. As you can see, the phrase “all perils” has nothing to do with your all other perils deductible.

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The editorial content on Clovered’s website is meant to be informational material and should not be considered legal advice.

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