What type of insurance policy specifically states the covered perils?

A Named Peril Policy distinctly identifies the specific perils or risks that are covered within the policy document. This means that if a peril is not listed in the policy, it is not covered, giving the policyholder clear understanding of the scope of their coverage.

This type of policy is particularly important for those who want to have clarity on what is covered and what is not, as they may have specific needs or might be considering potential risks for which they want to ensure they have protection. The policy typically enumerates various perils such as fire, theft, or natural disasters, and provides coverage only against those explicitly mentioned.

In contrast, a Comprehensive Policy offers broader coverage, often including many types of perils, but it doesn’t detail out specific risks in the same way. An All-Risk Policy, on the other hand, generally covers everything except for specific exclusions, and a Blanket Policy refers to a single policy that covers multiple locations or items under one limit, rather than focusing on named perils. Each of these alternatives operates on different principles of coverage, making the Named Peril Policy distinct in its requirement for specified covered events.