What is the definition of Named Peril?

A Named Peril refers to the risk that is identified and covered by an insurance policy.

The policy protects the insured against losses incurred from the risk. There are clauses that accompany the covered perils so that the insured knows what will not be covered by the policy. If the unlisted peril is the one that caused the damage, no claims will be paid.

This type of policy is usually provided for homeowners' insurance policy. This kind of policy is usually cheaper than comprehensive coverage policies. This may be a good idea if a proposed insured is not living in an area that is not prone to perils such as floods or earthquakes. He does not need to pay for coverage for such perils.

Also, homeowners can buy a named peril policy even when there is a comprehensive insurance policy in place if the homeowner feels that the coverage of the policy is not enough.

• Insolvency
• Misstatement of Age or Sex Provision
• Modified Premium Policies
• Moral Hazard
• Comprehensive Coverage