Named Perils Insurance Policy
Definition of 'Named Perils Insurance Policy'
For example, a named perils policy might cover fire, theft, and vandalism, but it might not cover damage from water or wind. If you experience damage from a peril that is not listed in your policy, you will not be able to file a claim.
Named perils insurance policies are typically less expensive than all-risk policies, which cover all types of damage to your property. However, they offer less protection, since you are only covered for the specific perils that are listed in your policy.
If you are considering purchasing a named perils insurance policy, it is important to carefully review the policy to make sure that you are aware of all of the perils that are covered and not covered. You should also make sure that the policy limits are adequate to cover your needs.
Here are some of the pros and cons of named perils insurance policies:
* Named perils insurance policies are typically less expensive than all-risk policies.
* They are easy to understand, since you only need to be aware of the specific perils that are covered.
* Named perils insurance policies offer less protection than all-risk policies.
* You may not be covered for damage from a peril that is not listed in your policy.
Ultimately, the decision of whether or not to purchase a named perils insurance policy is a personal one. You need to weigh the pros and cons to determine which type of policy is right for you.
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