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📄 '''Named perils policy''' is an [[Definition:Insurance policy | insurance policy]] that provides coverage exclusively for losses arising from a finite, explicitly stated list of perils — such as fire, explosion, windstorm, [[Definition:Theft | theft]], or riot — and offers no protection for causes of loss not appearing on that list. It represents one of the two fundamental policy structures in [[Definition:Property insurance | property insurance]], the other being the [[Definition:All-risk policy | all-risk (open perils) policy]], and the choice between them shapes the breadth of protection a [[Definition:Policyholder | policyholder]] receives.

🔧 In practice, a named perils policy places the [[Definition:Burden of proof | burden of proof]] squarely on the insured: to collect on a claim, the policyholder must show that the damage was caused by one of the perils spelled out in the contract. [[Definition:Claims adjuster | Claims professionals]] examine physical evidence, weather records, police reports, and other documentation to determine whether the loss matches a covered peril. If the cause is ambiguous or falls between two perils — one covered, one not — the outcome often hinges on the [[Definition:Proximate cause | proximate cause]] doctrine and applicable state [[Definition:Insurance law | insurance law]]. Standard forms like the [[Definition:ISO | ISO]] CP 10 10 (Causes of Loss — Basic Form) exemplify the named perils approach in [[Definition:Commercial property insurance | commercial property]] coverage.

🎯 Choosing a named perils policy involves a deliberate trade-off between cost and comprehensiveness. [[Definition:Underwriting | Underwriters]] can price these policies more precisely because the universe of covered events is bounded, which typically translates into lower [[Definition:Premium | premiums]] for the buyer. Yet the protection gaps can be significant: perils like earth movement, [[Definition:Flood insurance | flood]], sewer backup, or [[Definition:Mysterious disappearance | mysterious disappearance]] are commonly absent from named perils lists. [[Definition:Insurance agent | Agents]] and [[Definition:Insurance broker | brokers]] play a key advisory role in ensuring that clients understand exactly which risks remain uninsured and whether supplemental [[Definition:Endorsement | endorsements]] or separate policies are warranted to close those gaps.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Named peril coverage]]
* [[Definition:All-risk policy]]
* [[Definition:Proximate cause]]
* [[Definition:Endorsement]]
* [[Definition:Commercial property insurance]]
* [[Definition:Exclusion]]
{{Div col end}}

Definition:Named perils policy - Revision history

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