Home & Property

Named Perils

A coverage approach where only the specific causes of loss listed in the policy are covered.

Last reviewed: May 2026 · Editorial methodology

Definition

Under a named-perils policy form, the insurance company owes coverage only when damage stems from one of the explicitly enumerated causes — such as fire, lightning, windstorm, hail, theft, or vandalism. The ISO HO-3 uses named perils for Coverage C (personal property), and the HO-4 and DP-1/DP-2 use named perils throughout. The policyholder bears the burden of proving that a covered peril caused the loss. Standard ISO named-perils forms list 16 perils for personal property; older forms (like the HO-1 and DP-1) cover as few as 11. Any peril not on the list — such as accidental water discharge from a neighbor's unit, mold, or power surge — is not covered under pure named-perils forms. Named-perils coverage is generally less expensive than open-perils coverage but can leave surprising gaps, particularly for water-related losses that fall outside the named categories.

Where this term matters

Home Insurance →Renters Insurance →Landlord Insurance →

Tip

Glossary definitions are educational. Always check your own policy language — insurers can define common terms differently from one another. When in doubt, request a written explanation from your agent.

Related terms

Open Perils (All Risk)A coverage approach where all causes of loss are covered unless explicitly excluded in the policy.PerilA specific cause of loss — such as fire, windstorm, or theft — that triggers an insurance claim when it damages covered property.HO-3 PolicyThe most common homeowners insurance form, providing open-perils coverage on the dwelling and named-perils coverage on personal property.HO-4 Policy (Renters)The standard renters insurance policy covering personal property, liability, and additional living expenses for tenants.HO-8 Policy (Modified Coverage)A modified homeowners form for older or high-risk homes that pays on actual cash value rather than replacement cost.DP-1 (Dwelling Fire Basic Form)The most basic dwelling fire policy, covering only fire, lightning, and internal explosion on a landlord or non-owner-occupied property.

Related guides

Source: Cover Forge USA editorial team|Last verified: May 2026|Methodology
Definitions are educational and may be simplified. Always refer to your policy contract and consult a licensed agent for terms that affect coverage decisions.
CF

Cover Forge USA Editorial Team

Editorial Lead

This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.

Reviewed June 2026

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