Named Peril

Homeowners insurance policies are written to address both "named perils" and "open perils," a "peril" being a cause of damage. A named peril covers potential causes for a loss on the insured property that are specifically listed as covered in the insurance policy.

For instance if a home was damaged by Reason X and Reason X is specifically named in the language of the insurance policy, then Reason X is covered by that policy.

Common named perils that may be specifically listed on a homeowners policy include incidents of fire, lightning, explosion, and theft. Open perils, on the other hand, are all the potential causes for a loss on the insured property that are not specifically excluded from coverage in the insurance policy.

Common open peril exclusions from homeowners policies include natural disasters (earthquakes or floods, for instance) and man-made disasters (such as nuclear incidents, acts of war, and acts of terrorism.)

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