Describe "named perils" in an insurance context.

In the context of insurance, "named perils" refers to specific risks or hazards that are explicitly outlined in an insurance policy. This means that the policy will provide coverage only for those listed perils. For example, if a homeowner's insurance policy states that it covers risks such as fire, theft, and vandalism, those are the "named perils" for which the insured is protected. This approach allows policyholders to understand precisely what risks they are covered against, making it clear what incidents would lead to a claim being honored.

The concept of named perils contrasts with more comprehensive policies that offer coverage for all risks unless explicitly excluded. This means that if a risk is not named in the policy, the insured is generally not covered for that risk. Therefore, understanding named perils is essential for policyholders to assess their coverage effectively and determine if they need additional protection for risks not listed in their policy.