PROPERTY INSURANCE
Named perils definition
Named perils insurance is property insurance that covers only the specific causes of loss listed in the policy.
In practice, this means those perils that are declared in an insurance policy as specifically covered by that policy. Insurers are liable for losses caused by perils that have been named as covered under the terms of the insurance policy but not any additional perils. This term gives insurers, brokers, reinsurers and risk managers a common way to discuss the concept when reviewing policies, claims, regulation or market data.
This term is especially useful in property insurance, commercial insurance and claims assessment. It helps clarify what losses may be covered and how policy wording affects the scope of protection. It also helps users compare how insurance is structured, regulated, priced or claimed across different markets.
Named perils is closely related to all risks, open perils, property insurance and exclusions. Linking these concepts together helps build a clearer glossary structure and gives readers a stronger understanding of how individual insurance terms connect within wider international insurance practice.
At a glance
- Used in
- Property insurance, commercial insurance and claims assessment.
- Purpose
- Helps clarify what losses may be covered and how policy wording affects the scope of protection.
- Important because
- Clear definitions support better comparison of insurance products, market practices and regulatory requirements across jurisdictions.
- Related terms
- all risks, open perils, property insurance and exclusions.
Example of named perils insurance
A policy covers fire, lightning and explosion only. If damage is caused by a peril not named in the wording, the named perils policy may not respond.