Which policy form includes coverage for perils only as they are explicitly mentioned?

The named peril policy is characterized by its approach to coverage, specifically granting protection only for the dangers explicitly listed within the policy. This means that if a peril is not mentioned in the policy documentation, it will not be covered.

For instance, if a named peril policy lists fire, theft, and vandalism as covered perils, then only losses resulting from these specific events would be compensated. This contrasts with more comprehensive policies, which may cover a broader range of potential risks without needing to specify each one.

Named peril policies are particularly useful for individuals or businesses wanting to clearly understand what is covered. They can help in managing expectations regarding coverage and can often be more affordable due to their limited scope.