What is a named peril?

Named peril is a term for a specific type of damage or cause of loss, called a peril, that is listed by name on an insurance policy. A peril can be anything that might cause damage to the property covered by an insurance policy. For example, a property insurance policy may specifically list coverage for damage caused by fire, lightning, windstorm, explosion, and theft. All of these listed causes of loss are named perils for that policy. Policies from different insurance companies for the same type of insurance tend to have similar named perils; however, there can be differences.

Learn more about named perils

When do I need to be aware of named perils?

Any time you need to file an insurance claim for damaged property, you need to be aware of whether your policy is a named perils policy and if the damage was caused by a named peril. For example, if the wind from a storm causes a tree limb to fall on and damage your roof, you need to know if wind is a named peril on your homeowners policy. If wind damage is not listed as a named peril or is specifically excluded by your policy, your claim will probably be denied.

What is important to know about named perils?

Not all insurance policies are named peril policies. Open perils policies provide coverage for any loss that isn't specifically excluded from the policy. If your policy is a named perils policy, you should be aware of the ways this affects your coverage:

Only damage that is caused by a named peril on your policy will be covered.
Coverage exclusions may still apply.
Compensation for damages caused by named perils is limited by your policy limit, co-insurance requirement, and deductible.
Named perils coverage is ideal for people who want to lower their premiums by choosing specific perils to insure their property against.