Named Peril

What Does Named Peril Mean?

Named perils are events or hazards explicitly listed as covered in a property insurance policy. Examples include theft, vandalism, fire, windstorm, and earthquake. This type of policy differs from all-risks, comprehensive, or broad policies, which typically provide more extensive coverage. Due to its limited coverage, named perils insurance often comes with a lower premium.

Insuranceopedia Explains Named Peril

Most comprehensive homeowners insurance policies do not necessarily cover all risks and may provide excessive coverage. If you are not concerned about perils like earthquakes and floods, you can opt for a named perils policy and request coverage for more general perils such as fire and theft.