Definition of "Named peril policy"

Named peril policy is how it’s called in the Real Estate Industry the insurance policies that specify the perils it covers. Under a named peril policy, if anything that isn’t listed in the policy happens to your house, the insurance will not cover it.

Here's a scenario: Let’s say you have a named peril policy and in it, listed, are lightning strikes and fires. If a flood happens and damages your house, or if someone throws a rock in your window, the insurance is not obligated to provide any help, because those perils were not "named" listed on your policy.

The opposite of that is an Open perils policy, where everything that is NOT listed is covered.

So know it that, whenever you're looking at homeowner's insurance and someone says "this is a named peril policy", it means you have to be pretty aware of what is listed and what perils your house is most likely to be in danger of.

Real Estate Tips:

Be able to name anything! Know all the words by searching through our Real estate Glossary Terms!

And since you just can't know it all; find a real estate agent to be your strength where you're weak!

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Coverage for shippers of certain radioactive materials, such as medical or commercial isotopes, for direct loss or damage by radioactive contamination; does not cover transport of ...

Coverage for a practicing physician, surgeon, or dentist, when bodily injury, personal injury, and/or property damage is incurred by a patient and the patient sues for injuries and/or ...

Part of the Balanced Budget Act of 1997 that permits medicare recipients to select coverage among various private health care plans to include HMOS, PPOS, POINT-of-SERVICE (POS), MEDICAL ...

Insured sum paid regularly to a married partner (usually a wife but sometimes a husband) of a retired worker. There are several forms: The Federal Retirement Equity Act mandates a spouse's ...

Type of excess of loss reinsurance in which the insurance company (cedent) cedes its known loss revenues to its reinsurer. ...

Coverage for liability exposure resulting from the activities of a business; includes: direct liability acts of the business resulting in damage or destruction of another party's property ...

Same as term Common Disaster Clause: wording in life insurance policies to determine the order of deaths whenthe insured and the beneficiary die in the same accident. For example, if the ...

Supplemental coverage written into or endorsed onto many business and personal liability policies. Covers medical costs and loss of income of persons injured on an insured's property, ...

Employee benefit insurance plan whose objective is to provide the retired employee with life insurance. This group life insurance product is composed of two basic parts: annually renewable ...

Popular Insurance Questions