Named Perils Insurance Policy

DEFINITION of 'Named Perils Insurance Policy'

A home insurance policy that only provides coverage on losses incurred to your property from hazards or events named on the policy. Named peril policies may be purchased as a less expensive alternative to a comprehensive coverage or broad policies, which are policies that tend to offer coverage to most perils.

BREAKING DOWN 'Named Perils Insurance Policy'

Suppose a homeowner doesn't live in an earthquake and flooding prone area, but is still concerned about fire, theft and hail damage. The homeowner may elect to get a named perils policy and only declare coverage against fire, theft and hail, while leaving the earthquake and flooding coverage off the policy.

Keep in mind that a broad coverage policy does not necessarily guarantee your property will be covered against all forms of perils. These policies contain conditions that cover what the insurer thinks are the most likely perils. Therefore it's a good idea for homeowners to check their broad coverage policies to make sure they do cover all the perils that they are concerned about. If the broad policy isn't sufficient, homeowners should buy a named peril policy to fill that hole in their coverage.

RELATED TERMS
  1. Difference In Conditions (DIC) ...

    An insurance policy that provides expanded coverage for some ...
  2. Uninsurable Peril

    Events or situations that insurance coverage is not available ...
  3. Commercial Multiple Peril Policy

    A commercial insurance policy that offers at least two forms ...
  4. Commercial Package Policy (CPP)

    An insurance policy that combines coverage for multiple perils, ...
  5. Use and Occupancy Insurance – U&O

    A type of insurance that covers against the loss of use of machinery ...
  6. Prior Acts Coverage

    A feature of an insurance policy that extends the coverage of ...
Related Articles
  1. Professionals

    Health and Property Insurance

    Health and Property Insurance
  2. Professionals

    Exclusions and Covered Forms of Peril for Homeowners Insurance

    Exclusions and Covered Forms of Peril for Homeowners Insurance
  3. Home & Auto

    Intro To Insurance: Property And Casualty Insurance

    By Cathy ParetoProperty and casualty insurance is insurance that protects against property losses to your business, home or car and/or against legal liability that may result from injury or damage ...
  4. Insurance

    How Much Homeowners Insurance Should You Carry?

    This breakdown of coverage into its component parts will provide the answer.
  5. Home & Auto

    The Importance Of Property Insurance

    Property insurance is important, but there's a lot you need to learn in order to get the proper coverage.
  6. Budgeting

    Unexpected Expenses

    Bankruptcy can be a result of overspending or bad planning, but sometimes, it's no one's fault. Find out how you can avoid it.
  7. Entrepreneurship

    Insurance Coverage: A Business Necessity

    Don't go to work without this policy in place - especially if your work is in your home.
  8. Home & Auto

    Filling The Gaps In General Liability Insurance

    Standard liability coverage may not be enough. Special needs call for specialized policies.
  9. Investing

    7 Issues to Consider When Determining Life Insurance Coverage

    Seven issues to consider when buying life insurance to ensure the coverage is tailored to meet your personal financial situation.
  10. Options & Futures

    For Top-Notch Insurance Coverage, Compare Quotes

    Find out how to use and compare policy options to get the best coverage at the best price.
RELATED FAQS
  1. What are some examples of unexpected exclusions in a home insurance policy?

    Learn about commonly excluded perils with different standard insurance policies. Explore events that homeowners should consider ... Read Answer >>
  2. Does renters insurance cover storage units?

    Learn how renters insurance coverage extends to a storage unit but is usually limited to a percentage of the total contents ... Read Answer >>
  3. Does renters insurance cover moving?

    Learn how a renters insurance policy will only provide coverage during a move under certain circumstances, such as damage ... Read Answer >>
  4. Does renters insurance cover mold?

    Learn how mold damage is covered under a renters insurance policy if the insured makes a good faith effort to remedy the ... Read Answer >>
  5. Does homeowners insurance cover roof leaks?

    Discover how coverage for roof leaks is included in an all perils policy as long as it is not the result of negligence or ... Read Answer >>
  6. How does the 80% rule for home insurance work, and how do capital improvements affect ...

    The 80% rule refers to the fact that most insurance companies will not fully cover the cost of damage to a house due to the ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center