When you buy your property insurance for your home you often get to choose the level of coverage you want. The more that is covered,the more you will pay. For coverage the insurance answer is which form do you buy? Named Perils is the most basic coverage for property policies. Specified Perils is the most basic physical damage coverage for automobile policies.
A named perils policy will only cover the perils listed below. It is important to understand that if it is not listed, it is not covered.
Coverage included
- Fire or lightning.
- Explosion.
- Smoke.
- Falling object.
- Impact by Aircraft or Land Vehicle.
- Riot.
- Vandalism or Malicious Acts.
- Water Damage.
- Windstorm or Hail.
- Glass Breakage.
- Transportation.
- Theft, Including Damage Caused by Attempted Theft.
- Electricity.
As always, there are exclusions and limitations to the coverages. It is important that you talk to your broker or agent. Choose what you want but always be aware of what you are not choosing to buy and therefore self-insuring.
When you are purchasing business or commercial insurance it is important to understand that named peril policies will always spell out which perils are going to have insurance coverage. There is a huge difference between this and an "all risk" policy which covers everything except what is listed on the exclusions in the policy wordings.
Control your insurance by asking for help. Get an explanation of the limits of your policy.