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📄 '''Named peril policy''' is an [[Definition:Insurance policy | insurance policy]] that restricts coverage to losses caused exclusively by perils specifically listed within the policy form. This type of policy stands in contrast to an [[Definition:All-risk policy | all-risk policy]], which covers any cause of loss not expressly excluded. In [[Definition:Property insurance | property]] and [[Definition:Casualty insurance | casualty insurance]] markets, named peril policies have long served as a cost-effective coverage option for [[Definition:Policyholder | policyholders]] who either face a limited range of exposures or who need to manage [[Definition:Premium | premium]] budgets tightly.

🔧 The mechanics are straightforward: the policy's insuring agreement contains a finite list of covered perils — commonly including fire, lightning, windstorm, hail, explosion, smoke, vandalism, and certain water damage events. If a loss results from a peril not on the list, the [[Definition:Insurance carrier | insurer]] has no obligation to indemnify. The [[Definition:Burden of proof | burden of proof]] rests with the insured to show that the cause of loss matches a [[Definition:Named peril | named peril]], which can complicate [[Definition:Claims management | claims handling]] when multiple causes contribute to a single event. [[Definition:Underwriter | Underwriters]] calibrate pricing by selecting which perils to include and adjusting [[Definition:Deductible | deductibles]] or [[Definition:Sub-limit | sub-limits]] for each, allowing granular control over the risk they assume. Some forms also layer named peril coverage with optional [[Definition:Endorsement | endorsements]] that extend protection to additional causes of loss.

📊 From a portfolio management standpoint, named peril policies give insurers precision in defining their [[Definition:Exposure | exposure]] and managing [[Definition:Accumulation risk | accumulation risk]]. If a carrier wants to avoid writing earthquake or flood risk in a particular geography, it simply omits those perils from the form rather than negotiating complex exclusionary language. For policyholders, the trade-off between lower premiums and narrower coverage is a decision that [[Definition:Insurance broker | brokers]] and [[Definition:Risk manager | risk managers]] navigate daily. In developing or specialty markets, named peril forms often serve as the primary available coverage, making it especially important for insureds to understand exactly which hazards are — and are not — covered.

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

Definition:Named peril policy - Revision history

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