Which statement best describes a named peril policy?

• A. It covers only listed perils.
• B. It covers all risks, with no exclusions.
• C. It covers all losses from any peril unless excluded.
• D. It covers only the hazards listed in the schedule.

Answer: (C)

Named peril coverage means the policy only pays for losses caused by perils that are specifically listed on the policy. If a loss arises from a peril that isn’t named, it isn’t covered. This contrasts with open or all-risk policies, which cover losses from almost any peril, subject to exclusions; the statement describing coverage for all losses from any peril unless excluded fits that open-peril concept rather than a named peril. The idea of hazards listed in a schedule isn’t the standard way named peril coverage is described, since the focus is on perils that are named, not hazards or a separate schedule.