What is typically covered by a named peril policy?

A named peril policy specifically covers damage or losses that arise only from conditions or events explicitly listed in the policy. This means that if a peril (an event that causes loss or damage) is not named in the policy, then any losses resulting from that peril are not covered. Common named perils in these types of policies might include fire, theft, vandalism, and certain natural disasters, depending on the particular policy.

This approach provides a more limited scope of coverage compared to an all-risk policy, which covers a wider range of potential risks unless specifically excluded. Therefore, understanding the specific conditions or events included in a named peril policy is crucial for policyholders to be aware of what protections they truly have in place against potential losses.