Definition of Named Perils insurance Policy

The named perils insurance policy is the insurance policy that provides insurance on the lost or damaged part of your house because of any hazard. The policy can be purchased as the less alternative to a comprehensive coverage.

The policy is basically an insurance you do of your home in order to save yourself from any hazards. The people who are concerned with the theft, fire or any other damage normally buy this insurance policy. It is up to the owner that would kind of perils he includes in his policy and it depends on the place where an owner lives. Suppose an owner has no tension related to earthquake or thunder so he can skip these in the policy paper and can name other hazards such as fire, windstorm, and theft. There are open perils and named perils in the insurance policy however the open perils has broad coverage. The homeowner has to name clearly about the hazards in the policy because the policy will cover only the named parts of your house. These policies are of two kinds the HO-2 policy and the HO-3, however, the HO-3 policy is more comprehensive.

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