Named Perils Insurance Policy

Definition

• A property insurance policy that only provides coverage for losses due to perils specifically named in the policy. For example, a homeowner may live in an area with little to no risk of an earthquake or a hurricane, but the individual may still want coverage for fire and theft. In this scenario, the homeowner may choose to select a named perils insurance policy that covers fire and theft instead of a more comprehensive umbrella insurance policy.

Synonyms
targeted insurance, à la carte

Related Terms and Acronyms

• Catastrophe Hazard — Definition,
  • An event, such as a hurricane or earthquake, that poses a risk of a catastrophic loss.
• Concurrent Causation — Definition,
  • If there is more than one cause of damage in an insurance claim and one cause is covered while the other is not, the insurer is obligated to cover the loss.
• Fire Insurance — Definition,
  • Insurance that covers losses from fire damage to insured assets.
• Insurance Policy — Definition,
  • A legal contract between an insurer and entity that specifies what the insurer is required to cover and any benefits the insured entity is entitled to.
• Kidnap and Ransom Insurance — Definition,
  • Insurance that covers expenses involved if an individual is kidnapped and ransom payments are made.
• Lawn Gnome Theft Insurance (LGTI) — Acronym, Backyard,
  • Insurance that covers losses resulting from lawn gnome theft.
  ➥ Also known as Garden Gnome Theft Insurance (GGTI).
• Named Perils — Definition,
  • Risks that are specifically listed as being covered in an insurance policy.
• Peril — Definition,
  • Anything that poses a risk of loss, which may or may not be insurable depending on the potential for risk.
• Property Insurance — Definition,
  • Insurance that provides coverage for damages to property from a number of perils.
• Umbrella Insurance — Definition,
  • Insurance used to cover different types of property in a single policy.