Understanding the Named Perils Insurance Policy: Tailored Coverage for Your Home

Q: How does it differ from an all-risk policy?

All-risk policies cover all perils except those explicitly excluded, while named perils policies only cover those specifically listed.

Q: Can I customize my named perils policy?

Yes, you can select which perils to include based on your needs and location.

Definition & Meaning

A named perils insurance policy is a specific type of home insurance that provides coverage for losses to a homeowner's property only from certain hazards or events explicitly listed in the policy. Unlike broader policies that cover a wide range of risks, named perils policies allow homeowners to choose coverage for specific concerns relevant to their area. For example, a homeowner in a region with a low risk of earthquakes might select coverage for fire and flood while excluding earthquake protection, resulting in a lower premium cost.

Table of content

Legal Use & context

Named perils insurance policies are commonly used in the realm of property insurance. They are particularly relevant in civil law, where homeowners seek to protect their assets against specific risks. Users can manage their insurance needs through legal forms and templates provided by resources like US Legal Forms, which can help them navigate the selection and customization of their insurance policies.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

Example 1: A homeowner in Florida may choose a named perils policy that covers hurricanes and flooding, but excludes coverage for earthquakes, which are rare in that area.

Example 2: A homeowner in California might select coverage for fire and theft, omitting earthquake coverage due to the high cost associated with it (hypothetical example).

State-by-state differences

State	Common Named Perils	Exclusions
California	Fire, Theft	Earthquake, Flood
Florida	Hurricane, Flood	Earthquake, Fire
Texas	Windstorm, Hail	Flood, Earthquake

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term	Definition	Key Differences
All-Risk Policy	Covers all perils except those specifically excluded.	Broader coverage compared to named perils policies.
Basic Form Policy	Covers a limited number of perils, typically the most common.	Less coverage than named perils policies, which can be tailored.

Common misunderstandings

What to do if this term applies to you

If you are considering a named perils insurance policy, evaluate the specific risks in your area and determine which perils you want to cover. You can explore US Legal Forms for ready-to-use legal templates that can assist you in drafting or modifying your insurance policy. If your situation is complex or if you have questions, consulting a legal professional may be beneficial.

Find the legal form that fits your case

Browse our library of 85,000+ state-specific legal templates.

This field is required

Quick facts

Typical coverage includes specific perils such as fire, theft, and flood.
Premium costs vary based on location and selected coverage.
Exclusions may apply for certain natural disasters not listed in the policy.

Key takeaways

Frequently asked questions

What is a named perils insurance policy?

It is a type of home insurance that covers losses from specific hazards listed in the policy.