What are named perils?

When it comes to your insurance policy there are certain things that are covered and certain things that are NOT covered. One would normally see the wording ‘named perils’ on a property policy such as a homeowner’s policy. Named perils are the exact circumstances that your insurance would pay for your loss or damage to your property. The named perils will be listed in your policy such as fire, lightning or internal explosion. There are many other perils that can be listed in your policy.

The downside of having a named peril policy is that the insurance will only cover losses resulting from those listed events in your policy. Anything else is not covered and you would be responsible for taking care of those damages on your own. Not so nice when you have a wind-storm destroy your roof and that is not a named peril.

The advantage of having a named peril policy is that you will have a lower premium. Clients would select a named peril policy if they are not concerned with certain risks.

Reiner Insurance is a full service insurance agency writing all forms of insurance including Liability, Workers Compensation, Commercial & Personal Auto, Homeowners, life and health insurance.  We are an independent agent representing many insurance companies.