Lets look at these in more detail.

What is covered under named perils. It is almost always included in named perils. Named perils coverage means you are covered for specific perils listed in your policy. The broad form covers direct damage to dwellings and personal property on a broad named perils basis.

Defining the 16 named perils If youve purchased an HO-3 insurance policy its important to understand your coverage plan. As with all-risk policies there will be exceptions to coverage. Depending on the type of home insurance policy you have some of all of your property may be covered against Named Perils only.

Fire A home belongings and structures such as garages or sheds are usually covered for fire damage including smoke damage. Exceptions common to both frequently include floods earth movements think earthquakes and mudslides and damage intentionally inflicted by the insured. Though most damages made to the physical household are covered under this policy it only covers the repair or replacement of your personal belongings.

Common examples of excluded perils are flooding and earthquakes. Home insurance policies generally offer coverage for named perils such as fire wind and theft. B All Risk Insurance Policy also known as Comprehensive Coverage a policy that covers everything except for what is specifically excluded.

For example if your policy does not mention water damage and your building floods you will. Theres a fundamental difference between Open and Named perils coverage. Whats Covered by Named Perils.

Open Perils provides insurance coverage for any reason not specifically excluded. Based on this explanation of risk or peril a named peril is a risk specified in writing in the insurance policy. By default anything not named is excluded.