Named Peril Policy
Named peril policy is how it’s called in the Real Estate Industry the insurance policies that specify the perils it covers. Under a named peril policy, if anything that isn’t listed in the policy happens to your house, the insurance will not cover it.
Here's a scenario: Let’s say you have a named peril policy and in it, listed, are lightning strikes and fires. If a flood happens and damages your house, or if someone throws a rock in your window, the insurance is not obligated to provide any help, because those perils were not "named" listed on your policy.
The opposite of that is an Open perils policy, where everything that is NOT listed is covered.
So know it that, whenever you're looking at homeowner's insurance and someone says "this is a named peril policy", it means you have to be pretty aware of what is listed and what perils your house is most likely to be in danger of.
Real Estate Tips:
Be able to name anything! Know all the words by searching through our Real estate Glossary Terms!
And since you just can't know it all; find a real estate agent to be your strength where you're weak!
Popular Insurance Terms
Performance of managerial and clerical functions related to an employee benefit insurance plan by an individual or committee that is not an original party to the benefit plan. In selecting ...
Insurance arrangement in which all employees of a given business firm are accepted into a plan regardless of their physical condition. The employee cannot be required to take a physical ...
Type of commercial form that provides coverage for business vehicles regardless of whether they are owned, leased, hired, or borrowed. The form's coverages are divided into the following ...
Insurance that follows an insured property. ...
Liability insurance exception for pollution coverage that is not both sudden and accidental from the insured's standpoint. As a result of the damage suits from such incidents as the ...
Component of necessary coverage determined by the "needs approach" to life insurance for a family. It is intended to cover last-minute expenses as well as those that surface after the death ...
Evidence of a temporary contract obliging a life or health insurance company to provide coverage as long as a premium accompanies an acceptable application. This gives the company time to ...
Term or whole life policy with a face value that increases over time. ...
Person who has been authorized by the insurance company to pay a loss (s) incurred by the insured. ...
Have a question or comment?
We're here to help.