Property · Insurance Term
Named Perils (Specified Perils)
Definition
A named perils policy covers only the causes of loss it specifically lists, such as fire, lightning or windstorm. If a cause is not on the list, it is not covered. This differs from an open perils policy, which covers all causes not excluded.
In Plain English
With named perils, the burden is on you to show the loss came from a listed peril. The Causes of Loss – Basic Form is a named perils form that lists a short set of causes. The broad form adds a few more. These forms are narrower than most owners expect.
The Causes of Loss – Special Form works the other way. It covers direct physical loss unless the policy excludes or limits it. That is why it is often called open perils. Most commercial property owners and most lenders prefer special form when it is available.
Named perils still appears on some policies for vacant buildings, older or distressed properties, and certain inland marine or specialty coverages. Read the list carefully so you know what is and is not included.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical: a vacant building is insured on a basic named perils form. A pipe bursts and floods the first floor. Because water damage from a burst pipe is not on the basic form's list, the loss may not be covered.
What to Watch For
- Check which causes of loss form appears on your declarations page.
- Ask whether special form is available and what it would cost.
- Confirm your lender accepts the form you have.
- List the risks that worry you most and confirm each is covered.
Last updated October 14, 2026 · Primesure editorial team · How We Write