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📋 '''Named peril coverage''' is a form of [[Definition:Property insurance | property insurance]] that protects the [[Definition:Policyholder | policyholder]] only against losses caused by perils explicitly listed in the [[Definition:Insurance policy | policy]] — such as fire, lightning, windstorm, hail, [[Definition:Theft | theft]], or vandalism — rather than covering all risks unless specifically excluded. It stands in direct contrast to [[Definition:All-risk policy | all-risk (open perils) coverage]], and the distinction has profound implications for who bears the burden of proof when a [[Definition:Claims | claim]] is filed.

⚙️ Under a named peril structure, the insured must demonstrate that the loss resulted from one of the perils enumerated in the policy. If the cause of damage falls outside the list — or if the cause is ambiguous — the [[Definition:Insurance carrier | insurer]] has grounds to deny the claim. For example, a named peril policy that lists "windstorm" but not "flood" would not respond to water damage caused by storm surge, even though the same weather event triggered both types of harm. [[Definition:Claims adjuster | Adjusters]] investigating a named peril claim focus on matching the physical evidence to a specific listed cause, and disputes often hinge on whether the proximate cause of loss aligns with a covered peril or falls into an uncovered gap.

💰 From a pricing and [[Definition:Underwriting | underwriting]] standpoint, named peril coverage tends to carry lower [[Definition:Premium | premiums]] than comparable all-risk forms because the insurer's exposure is narrower and more predictable. This makes it an accessible option for cost-conscious buyers — it is common in basic [[Definition:Homeowners insurance | homeowners]] forms (such as the [[Definition:HO-1 | HO-1]] and [[Definition:HO-2 | HO-2]]) and in many [[Definition:Commercial property insurance | commercial property]] programs for lower-value risks. However, the trade-off is real: policyholders may discover coverage gaps only after a loss, making it essential that [[Definition:Insurance agent | agents]] and [[Definition:Insurance broker | brokers]] clearly explain what is and isn't on the list at the point of sale.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:All-risk policy]]
* [[Definition:Named perils policy]]
* [[Definition:Proximate cause]]
* [[Definition:Property insurance]]
* [[Definition:Exclusion]]
* [[Definition:Homeowners insurance]]
{{Div col end}}

Definition:Named peril coverage - Revision history

PlumBot: Bot: Creating new article from JSON