Named Peril
A specific type of risk or hazard that is explicitly listed and covered in an insurance policy. Only the perils specifically mentioned in the policy are covered, unlike an open perils policy which covers everything except what's excluded.
Example
“John's homeowner's policy was a named peril policy that covered fire, theft, and vandalism, but when his roof was damaged by hail, he discovered hail wasn't listed as a covered peril.”
Memory Tip
Think 'If it's not NAMED, you're not COVERED' - the peril must be specifically listed to be protected.
Why It Matters
Understanding whether your policy covers named perils only can save you from expensive surprises when filing claims. Many homeowners assume they have broader coverage than they actually do, leading to denied claims for unlisted perils.
Common Misconception
Many people believe that if something sounds like it should obviously be covered, their insurance will pay for it. In reality, named peril policies only cover exactly what's listed, so earthquake damage won't be covered unless earthquake is specifically named as a covered peril.
In Practice
Sarah has a named peril homeowner's policy covering fire, lightning, windstorm, and theft. When a tree falls on her $15,000 roof during a windstorm, she's covered because windstorm is named. However, when the same tree falls during calm weather due to disease, causing $8,000 in damage, her claim is denied because 'falling trees' isn't specifically listed as a named peril. She would need to pay the $8,000 repair cost out of pocket.
Etymology
The term combines 'named' (specified by name) with 'peril' from the Latin 'periculum' meaning danger or risk, first used in maritime insurance contexts in the 17th century.
Common Misspellings
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