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📋 '''Named perils coverage''' is a form of [[Definition:Insurance policy | insurance policy]] structure under which the insurer agrees to indemnify the [[Definition:Policyholder | policyholder]] only for losses caused by perils that are specifically listed — or "named" — in the policy wording. If a peril is not enumerated, it is not covered, regardless of whether the loss would otherwise seem like a natural fit for the type of insurance purchased. This approach stands in contrast to [[Definition:All-risks coverage | all-risks]] (or "open perils") coverage, which covers any cause of loss except those explicitly excluded. Named perils policies are common across multiple lines and geographies, appearing in [[Definition:Property insurance | property]], [[Definition:Marine insurance | marine cargo]], and [[Definition:Homeowners insurance | homeowners]] products in markets from the United States and Canada to the United Kingdom, Europe, and Asia.

⚙️ A typical named perils [[Definition:Property insurance | property]] policy might list fire, lightning, explosion, windstorm, hail, smoke, vandalism, and certain water damage events as covered causes of loss. Each peril is usually defined with specificity, and losses arising from causes outside the list — such as earth movement, flood, or gradual deterioration — receive no coverage unless separately endorsed. The insured bears the burden of proving that the loss resulted from one of the named perils, a reversal of the burden under all-risks forms, where the insurer must demonstrate that an exclusion applies. This burden-of-proof distinction has significant implications for [[Definition:Claims | claims]] handling and litigation. In practice, many markets offer tiered product structures — a basic named perils form at a lower [[Definition:Premium | premium]], with the option to upgrade to broader named perils or full all-risks coverage for additional cost — allowing [[Definition:Underwriter | underwriters]] and [[Definition:Broker | brokers]] to match coverage scope to the client's budget and risk profile.

💡 Named perils coverage plays a deliberate role in [[Definition:Underwriting | underwriting]] strategy and [[Definition:Portfolio management | portfolio management]]. By enumerating covered perils, insurers maintain tight control over their exposure, avoiding the open-ended uncertainty that can accompany all-risks wordings — particularly for emerging or poorly understood loss causes. For policyholders, the clarity of a named perils list can be a double-edged sword: while the coverage is transparent and unambiguous, gaps can catch the unwary off guard, especially when an event involves concurrent causes — one named and one not. Regulatory and judicial approaches to concurrent causation vary widely: some jurisdictions apply a dominant-cause test, others an "any contributing cause" standard. [[Definition:Broker | Brokers]] advising clients on the choice between named perils and all-risks coverage must weigh not only premium differences but also the specific exposures the client faces and the litigation landscape in the applicable jurisdiction.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:All-risks coverage]]
* [[Definition:Property insurance]]
* [[Definition:Policy exclusion]]
* [[Definition:Concurrent causation]]
* [[Definition:Peril]]
* [[Definition:Policy endorsement]]
{{Div col end}}

Definition:Named perils coverage - Revision history

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