What type of insurance policy covers only perils that are listed specifically within the policy?

A named peril policy specifically covers only those risks that are explicitly listed in the policy document. This means that if a peril is not mentioned, that peril is not covered under the policy. For example, a typical named peril policy might cover losses due to fire, theft, or vandalism, but it would not cover damage from an earthquake unless that specific peril is listed in the policy.

This type of policy allows policyholders to know exactly what is covered, providing clarity and specificity. It can be beneficial for those who are aware of the specific risks they wish to insure against. In contrast, an all-risk policy would cover a broader range of risks, including those not specifically listed, while a comprehensive policy often implies wide-ranging coverage but still does not specify that only named perils are covered. The term "generic policy" does not correspond to a standard type of insurance and lacks a specific meaning in this context. Therefore, the distinction that a named peril policy only provides coverage for explicitly stated dangers is key in understanding its function and limitations.