What is a Named Perils Insurance Policy?

A named perils insurance policy is a policy that covers losses from events specifically named in the policy.

How Does a Named Perils Insurance Policy Work?

For example, let's say John Doe owns a houseboat. His homeowners insurance policy does not cover tsunami damage, so he must get a separate policy to cover any damage he obtains if this occurs. If his boat is damaged by hail, earthquake or theft, the policy does not cover him (though his regular homeowners policy might).

Why Does a Named Perils Insurance Policy Matter?

Named perils policies address holes in coverage. For example, they may cover flood damage, hail damage or certain kinds of theft. The cost is based on the likelihood that the peril will occur and the estimated cost of the damage.

Ask an Expert about Named Perils Insurance Policy

All of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Named Perils Insurance Policy.

Be the first to ask a question

If you have a question about Named Perils Insurance Policy, then please ask Paul.

Ask a question
Paul Tracy
Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

Verified Content You Can Trust
verified   Certified Expertsverified   5,000+ Research Pagesverified   5+ Million Users