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!
Popular Insurance Terms
Indemnifies an insured whose property is stolen, damaged, or destroyed by a covered peril. The term property insurance encompasses numerous lines of available insurance. ...
Association formed to address the requirements of government risk pools. ...
Coverage in which an insurance company's portfolio is ceded to a re insurer who re insures a given percentage of a particular line of business. ...
Same as term Calendar Year Experience: paid loss experience for the period of time from January 1 to December 31 of a specified year (not necessarily the current year). ...
Coverage in the event an insured's automobile is damaged, destroyed, or lost through fire, theft, vandalism, malicious mischief, collision, or windstorm. There are two kinds of property ...
Payment for coverage that remains throughout the same premium-paying period. ...
Means of projecting the costs of pension plans on a level basis over a specified future period of time. The actuarial value of each employee's future benefits to be paid at retirement is ...
Contracts of reinsurance in which expected income from investments is a major component of the UNDERWRITING process. Also, the ultimate liability of the reinsurer is limited. The reinsurer ...
Ending a pension plan at the election of an employer or sponsor. The employer has the unilateral right to change or terminate a pension plan at any time. However, the termination must meet ...
Have a question or comment?
We're here to help.