In the context of property policies, what are "named perils"?

"Named perils" refer to specific risks or events that are explicitly covered in an insurance policy. This terminology means that the policy will only provide coverage for the perils that are specifically listed. For example, a named perils policy might cover risks like fire, theft, or certain natural disasters, but it won't cover any damage or loss resulting from events not listed in the policy. This approach is contrasted with "all-risk" policies, which cover any risk except for those specifically excluded.

This definition helps policyholders understand the exact nature of their coverage and the limitations of their policies. In insurance terms, understanding whether perils are named or not is crucial for assessing what risks are insured and implies that if a risk isn't listed, it isn't covered. Its importance lies in the clarity it provides regarding what is and isn’t protected, ensuring that policyholders are aware of their responsibilities for any potential uncovered risks.