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
Membership organization of individuals especially trained in the application of actuarial mathematics, including compound interest, annuities, life contingencies, measurement of mortality ...
Type of disability income insurance that provides income payments to the wage earner when income is interrupted or terminated because of illness, sickness, or accident and can continue to ...
Bulletin issued June, 1993, with disclosure requirements that strongly suggest that insurance companies establish reserves or add to current reserves for asbestos and environmental risks to ...
Critical point in the total amount of claims paid above which the excess insurance policy pays a percentage (generally 80-100%) of the claims for any policy year experience. ...
Part of a business liability policy that covers an insured for bodily injury or property damage liability to members of the public while they are on his premises. This coverage is available ...
Money expended with the object of profit. The goal of an insurance company is to invest in assets with a rate of return greater than that to be paid out as benefits under its policies. ...
Legislation passed in California that establishes procedures applicable to any worker who incurs a job-related injury. This act has far-reaching implications for workers compensation ...
In life insurance, the exchange of a series of installment payments, as the result of an installment settlement, for a lump sum distribution. ...
Authority to act on behalf of an individual that terminates upon its revocation or death of that individual. ...
Have a question or comment?
We're here to help.