Named Perils
Named perils coverage only protects against specific risks explicitly listed in the insurance policy, such as fire, lightning, windstorm, and theft. If a peril is not named, it is not covered.
Exam Tip
Named perils = ONLY what is listed is covered. HO-2 is named perils. Burden is on insured to prove!
What are Named Perils?
Named perils (also called "specified perils") coverage protects property against only those risks specifically listed in the policy. If a cause of loss is not on the list, there is no coverageāeven if the loss was accidental.
Common Named Perils (HO-2 Policy)
| Peril | Description |
|---|---|
| Fire or Lightning | Direct damage from flames or electrical discharge |
| Windstorm or Hail | Wind and ice damage |
| Explosion | Sudden, violent bursts |
| Riot or Civil Commotion | Damage from protests/unrest |
| Aircraft | Planes or falling objects |
| Vehicles | Damage by cars, trucks |
| Smoke | Sudden, accidental smoke damage |
| Vandalism | Intentional destruction |
| Theft | Stolen property |
| Volcanic Eruption | Direct volcanic damage |
| Falling Objects | Trees, branches, debris |
| Weight of Ice/Snow | Structural damage from accumulation |
| Water Damage | From plumbing, appliances (not flood) |
| Freezing | Frozen pipes causing damage |
| Electrical Damage | Power surge damage |
Named Perils vs. Open Perils
| Feature | Named Perils | Open Perils |
|---|---|---|
| Coverage | Listed risks only | All risks except exclusions |
| Burden of Proof | Insured proves peril is listed | Insurer proves exclusion applies |
| Premium | Lower | Higher |
| Common Policies | HO-2, DP-2 | HO-3 (dwelling), HO-5 |
Exam Alert
On named perils policies, the insured must prove the loss was caused by a listed peril. If the cause is ambiguous or not listed, there's NO coverage.
HO-2 vs. HO-3
- HO-2: Named perils for BOTH dwelling AND personal property
- HO-3: Open perils for dwelling, named perils for personal property
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Related Terms
Open Perils
InsuranceOpen perils coverage (also called "all-risk" or "special form") protects against all causes of loss EXCEPT those specifically excluded in the policy, providing broader protection than named perils.
Homeowners Policy (HO Forms)
InsuranceHomeowners policies are standardized insurance contracts (HO-2, HO-3, HO-5, etc.) that provide property and liability coverage for owner-occupied residences.
Actual Cash Value (ACV)
InsuranceActual Cash Value is a property valuation method that equals replacement cost minus depreciation, representing what property is worth today after accounting for wear and tear.