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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 losses caused by specific risks explicitly listed in the [[Definition:Insurance policy | policy]] wording. If a peril is not named in the contract, any loss arising from it is excluded — regardless of whether the damage is accidental or unforeseen. This stands in deliberate contrast to [[Definition:All-risks insurance | all-risks]] (or open-perils) policies, which cover any cause of loss except those specifically excluded, and the distinction is one of the most fundamental structural choices in property insurance design worldwide.

⚙️ Under a named perils policy, the [[Definition:Insurance policy | policy schedule]] or coverage form enumerates the covered causes of loss — commonly including fire, lightning, windstorm, hail, explosion, riot, smoke damage, vandalism, and certain water-damage events. The precise list varies by insurer, by product, and by market: a standard homeowners policy in the United States (such as the ISO HO-1 or HO-2 forms) names a defined set of perils, while commercial property forms in [[Definition:Lloyd's of London | Lloyd's]] or Continental European markets may be drafted bespoke with negotiated peril lists. In the event of a [[Definition:Claims | claim]], the burden of proof rests with the [[Definition:Policyholder | insured]] to demonstrate that the loss was caused by one of the specified perils. This contrasts with all-risks policies, where the insurer bears the burden of proving that an exclusion applies. [[Definition:Underwriting | Underwriters]] favor named perils structures when they want to tightly control exposure to ambiguous or emerging causes of loss — for instance, excluding [[Definition:Cyber risk | cyber-related]] physical damage or gradual environmental deterioration without having to draft and defend a specific exclusion clause.

💡 The choice between named perils and [[Definition:All-risks insurance | all-risks]] coverage carries significant practical consequences for both the insured and the insurer. Named perils policies generally command lower [[Definition:Insurance premium | premiums]] because their scope of coverage is narrower and more predictable, making them attractive for cost-sensitive buyers or for risks where the [[Definition:Exposure | exposure]] profile is well understood. However, policyholders bear the [[Definition:Coverage gap | coverage gap]] risk — a loss caused by an unanticipated event that falls outside the named list receives no indemnity. For [[Definition:Insurance broker | brokers]] advising clients, clearly communicating this limitation is a core professional obligation and a frequent source of [[Definition:Errors and omissions insurance | errors and omissions]] exposure when post-loss disputes arise. In [[Definition:Reinsurance | reinsurance]] and [[Definition:Catastrophe modeling | catastrophe modeling]], the named-versus-open-perils distinction also matters because it affects how aggregated losses are attributed to specific perils for purposes of treaty recoveries and event definitions.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:All-risks insurance]]
* [[Definition:Property insurance]]
* [[Definition:Peril]]
* [[Definition:Coverage gap]]
* [[Definition:Insurance policy]]
* [[Definition:Underwriting]]
{{Div col end}}

Definition:Named perils insurance - Revision history

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