What is meant by named perils coverage in a Homeowners Policy?

Named perils coverage in a Homeowners Policy refers specifically to coverage for certain perils that are explicitly listed in the policy documents. This means that the policy specifies which risks are covered, such as fire, theft, vandalism, or certain types of water damage. If a peril is not named within the policy, it is not covered.

This type of coverage contrasts with open perils coverage, where all risks are covered except those specifically excluded. Named perils coverage provides clarity for the homeowner, as they can identify exactly what risks are insurable under their policy. Understanding this distinction is crucial for homeowners to ensure they have the right level of protection against specific risks.