What type of insurance provides coverage for specific risks as listed in the policy?

Named peril insurance provides coverage for specific risks that are explicitly listed in the policy. This type of insurance allows the policyholder to understand clearly what risks are covered, as it spells out each peril that is insured. For example, if the policy lists fire, theft, and vandalism as covered perils, only damages arising from those specific events will be compensated. This contrasts with other types of policies, such as all-risk or comprehensive insurance, which cover a broader scope of risks and typically only exclude what is specifically mentioned in the policy.

By focusing on named perils, this type of insurance allows both the insurer and the insured to have a clear and mutual understanding of the coverage. It can be particularly cost-effective for those who do not need extensive coverage.