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. Personal Finance

    With HO5 Insurance, You're In Charge

    This home insurance covers everything and will put the onus on your insurance provider.
  2. Personal Finance

    How Much Homeowners Insurance Should You Carry?

    This breakdown of coverage into its component parts will provide the answer.
  3. Personal Finance

    What Is And Isn't Covered By Homeowners Insurance

    Understanding what your insurance covers can be confusing. Learn what almost all insurance policies have in common.
  4. Personal Finance

    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.
  5. Personal Finance

    Filling The Gaps In General Liability Insurance

    Standard liability coverage may not be enough. Special needs call for specialized policies.
  6. Personal Finance

    Insurance Coverage: A Business Necessity

    Don't go to work without this policy in place - especially if your work is in your home.
  7. Personal Finance

    Find the Best Homeowners Insurance

    Don't wait for the next Hurricane Sandy or massive oil sands fire to find out if your homeowners insurance really protects you. Test your savvy now.
  8. Managing Wealth

    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.
  9. Trading

    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.
  10. Personal Finance

    The Beginner's Guide To Homeowners' Insurance

    Discover everything new homeowners need to know before they sign on the dotted line.
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. 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 >>
  6. 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 >>
Trading Center