Named Perils Coverage
Named perils coverage only pays for property losses caused by a cause of loss specifically listed in the policy, such as fire, lightning, theft, or windstorm, meaning any cause not on that list simply isn't covered, no exceptions. The Allen Thomas Group makes sure clients on named perils policies know exactly what's listed and what isn't, since the gap between named perils and open perils forms is one of the most consequential differences in a property policy.
What a Named Perils List Typically Includes
| Commonly Named | Commonly Excluded (needs separate coverage) |
|---|---|
| Fire, lightning, explosion | Flood |
| Windstorm, hail | Earthquake |
| Theft, vandalism | Mechanical breakdown |
| Vehicle or aircraft impact | Sewer backup (often, unless added by rider) |
Named Perils vs. Open Perils Coverage
With named perils coverage, the burden is on the policyholder to show that the specific cause of a loss matches something on the list; if it doesn't fit cleanly, the claim gets denied. Open perils coverage flips that, covering everything except what's excluded, which puts the burden on the insurer instead. Named perils policies are typically less expensive precisely because they cover less ground, which makes them a reasonable fit for lower-value property or budget-conscious businesses willing to accept the narrower list.
Why the List Matters More Than the Price
Businesses sometimes choose named perils coverage purely to save on premium without checking what's actually on the list, then discover after a loss that the specific cause, water damage from a burst pipe versus flooding, for instance, falls into a gray area or isn't listed at all. Reviewing the named perils list against your actual property risks (location, building age, equipment type) before binding coverage is the only reliable way to know whether the savings are worth the narrower protection.
How The Allen Thomas Group Can Help You
We'll help you understand exactly how named perils coverage affects your coverage and cost, then shop your policy across 15+ A-rated carriers to find the right fit.
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