Named perils insurance

(redirected from Named Peril Policy)

Named perils insurance

An insurance policy that names specific risks covered by the policy.

Named Perils Insurance

A homeowner's insurance policy that only provides coverage for events named in the policy. For example, a named perils policy may cover tornadoes and fires, but not hurricanes and burglaries. These policies are less expensive than comprehensive policies; named perils insurance is designed to cover only the most likely events. However, comprehensive policies themselves do not cover all likelihoods, and a named perils policy may also serve as supplemental insurance to fill holes in one's broader policy.
References in periodicals archive ?
Property insurance can come in the form of an all-risk policy, also called an open peril policy, whereby all the causes of loss are covered unless they arc specifically excluded; or a named peril policy, which covers only specifically listed risks.
He said the only reason companies would select a named peril policy is if a risk is expressly excluded in their all-risk policy.
If the all-risk policy excluded flood or earthquake, the property owner would want to buy a named peril policy to cover these if he was exposed to those risks and the likelihood of occurrence was significant, said Mistick.