What typically defines the risks included in named perils coverage?

Named perils coverage specifically lists the perils that are covered by the policy, meaning that only those risks explicitly enumerated in the policy document are included. This type of coverage is distinct in that it does not provide blanket coverage for all potential risks; rather, it only offers protection against the hazards that are specified.

For example, if a homeowners insurance policy includes named perils coverage for fire, theft, and vandalism, any damages or losses occurring due to these specific events would be covered. If a peril is not named in the policy, such as damage from an earthquake or flood, the homeowner would not be covered for such losses.

This approach contrasts with open perils coverage, where risks are covered unless specifically excluded. Therefore, understanding that named perils coverage is confined to only those risks that are explicitly named is crucial for homeowners when assessing their coverage needs.