What are 'named risks' in an insurance policy?

Named risks in an insurance policy refer to specific perils that are explicitly listed and covered within the policy documentation. This means that only those particular risks identified in the policy are protected against loss or damage; anything not specifically mentioned is typically not covered.

For example, if a homeowners insurance policy includes named risks such as fire, theft, or vandalism, then those are the only risks the insurer is willing to cover. This type of coverage contrasts with "all-risks" or "open peril" policies, where coverage is more comprehensive and typically protects against any risks not specifically excluded.

Understanding named risks is crucial for policyholders to know what is and isn't protected under their insurance. It helps in assessing potential gaps in coverage and making informed decisions regarding additional protections that may be required.