Named Peril

A ‘Named Peril’ policy only provides coverage for the specific risks explicitly listed in the policy document. If a peril, such as fire, theft, or falling objects, is not on that list, there is no coverage for the loss. In a standard HO-3 policy, your personal belongings (Coverage C) are typically protected on a named-peril basis. This is a more restrictive type of coverage than ‘Open Perils,’ so homeowners must be aware of exactly which 16 or 17 risks are listed in their contract.