What Is A Named Perils Insurance Policy?

When you own your company, you have to deal with insurance. There are many types of insurance when it comes to business owners and the protection of their assets. If you’re currently dealing with the weighing of various insurance policies, the analysis of which policies you’ll need over others, and the comparison of one insurance provider to another, you may have run across the term “named perils insurance”. But what is a named perils policy?

A business insurance or home insurance policy that provides only coverage on property losses as a result of events or hazards specifically detailed in the policy is a named perils insurance policy. Compared to broad policies or comprehensive coverage, a less expensive alternative might be named peril coverage. Ordinarily, most “perils” are covered by broad/comprehensive policies.

Workings of a Named Perils Insurance Policy

If a homeowner/business owner doesn’t live in a flood prone or earthquake prone area, a named perils insurance policy may be something they decide to go with. While leaving the flooding and earthquake coverage off the policy, only against hail, theft, and fire would they declare coverage.

Key Points regarding Named Perils Insurance

  • All types of perils are covered when a person purchases an “all risks” policy, except for those expressly excluded from the list. Note: Before we go any further, however, please be aware of this – your property isn’t necessarily covered against all forms of peril by an “all risks” policy. Only declare coverage against hazards.
  • On a named perils insurance policy, hazards that may be declared can include flooding, earthquakes, hail, other natural disasters, fire, theft, and more.
  • If a homeowner resides in an area that is prone to flooding, rather than earthquake coverage, they may elect to go with an insurance policy specifying named perils.
  • A named perils insurance policy may be purchased by homeowners and only declare coverage against hazards like fire and theft.
  • On your property’s incurred losses, on a named perils insurance policy coverage is provided for risks or events specifically named in the plan.

All Risk Policies

We’ve referred to “all risk” policies a couple of times now. Contrary to a named perils contract, the risks that are not covered are named in an all-risks policy, rather than naming the risks that are covered. You should be automatically covered by perils that are not precisely named in the policy.

There are exceptions, however. Not covered by all risks policies, here are the most common exclusions:

  • Market loss
  • Nuclear hazard
  • Pollution
  • Infestation
  • Wear and tear
  • Government destruction or seizure
  • War
  • Earthquake

Referred to as a floater or a rider, additional premiums may be purchasable to cover excluded all risks events where business owners or individuals are concerned.

Contact Stone Claims Group For Fair Insurance Claim Resolutions

Do you own a business or a property? Are you filing a claim? Are you finding out that you didn’t have enough insurance? Did you have the right kind of insurance?

If you find yourself needing to submit a claim, contact Stone Claims Group. Let us check out your contract and conduct a review and appraisal. Let us take the headaches out of insurance coverage and claims.

We apply unparalleled expertise in everything we do. Got questions? Feel free to check out our FAQ page.

Click free claim review or give us a call at 1-800-892-1116. You can also email us at office@stoneclaims.com.


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