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📝 '''Named-perils insurance''' is a form of [[Definition:Property insurance | property insurance]] coverage that protects the [[Definition:Policyholder | policyholder]] only against specific hazards explicitly listed in the [[Definition:Insurance policy | policy]] — such as fire, lightning, explosion, windstorm, hail, or theft — rather than covering all causes of loss unless excluded. This stands in direct contrast to [[Definition:All-risks insurance | all-risks]] (or open-perils) policies, where coverage is presumed for any cause of loss not specifically carved out by an [[Definition:Exclusion | exclusion]]. Named-perils structures are found across personal and [[Definition:Commercial insurance | commercial]] lines globally, and they remain the standard approach in many developing insurance markets where [[Definition:Underwriting | underwriters]] prefer the certainty of a defined peril list over the broader exposure inherent in open-perils forms.

⚙️ When a [[Definition:Claim | claim]] is filed under a named-perils policy, the burden of proof falls on the insured to demonstrate that the loss resulted from one of the enumerated perils. This is the inverse of an all-risks policy, where the insurer must typically prove that an exclusion applies in order to deny a claim. For [[Definition:Insurance carrier | insurers]], the named-perils approach offers tighter control over the scope of coverage, reducing the likelihood of unexpected or ambiguous claims — a particular concern in markets where judicial interpretation of policy language tends to favor the insured. The [[Definition:Premium | premium]] for a named-perils policy is generally lower than for a comparable all-risks contract, reflecting the narrower scope of protection. [[Definition:Underwriting | Underwriters]] select the list of covered perils based on the risk profile of the insured property, geographic exposure, and the [[Definition:Reinsurance | reinsurance]] capacity available for specific hazards.

🔍 The distinction between named-perils and all-risks coverage has real consequences that surface most visibly after large loss events. Following a [[Definition:Natural catastrophe (Nat Cat) | natural catastrophe]], disputes frequently arise over whether a particular peril was listed — the classic example being wind-versus-water controversies after hurricanes, where a policy may name windstorm but exclude flood, leaving losses from storm surge in a grey area. Regulators and consumer advocates in many jurisdictions have pushed for clearer policy language and, in some cases, for standardized peril definitions to reduce these disputes. For [[Definition:Insurance broker | brokers]] advising clients, understanding the gap between named-perils and all-risks coverage is essential to structuring programs that avoid unintended exposures. In [[Definition:Multi-peril insurance | multi-peril]] packages, the named-perils approach lets insurers and insureds agree on a tailored list that matches the most relevant hazards for a given property or operation, offering a middle ground between the cost of full all-risks coverage and the risk of being unprotected.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:All-risks insurance]]
* [[Definition:Multi-peril insurance]]
* [[Definition:Property insurance]]
* [[Definition:Exclusion]]
* [[Definition:Peril]]
* [[Definition:Homeowners insurance]]
{{Div col end}}

Definition:Named-perils insurance - Revision history

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