Which term describes coverage provided only for specific risks outlined in a policy?

The term that describes coverage provided only for specific risks outlined in a policy is named perils. This type of coverage means that the insurance policy explicitly lists the perils that are covered, and if a peril is not named in the policy, it is not insured. This is different from comprehensive coverage, which typically covers a wide range of risks without specifying each one.

Named perils policies are commonly used in various types of insurance, including homeowners and renters insurance, where only the risks listed in the policy, such as fire, theft, or vandalism, will be covered. This means policyholders need to be aware of the specific risks they are insured against and can manage their expectations accordingly.

Broad coverage generally refers to a wider range of protection than named perils, while exclusionary coverage focuses on what is not covered rather than what is covered. Knowing the difference between these terms helps clients understand their policies better and choose the right level of coverage for their needs.