Which perils are typically covered under Named Perils Policies?

Named Perils Policies specifically cover certain risks that are expressly listed in the policy. Common perils, such as fire, lightning, and vandalism, are included in this category. These policies provide coverage for the risks that the insurer has specifically identified, meaning that any peril not listed in the policy will not be covered.

For instance, if a policy explicitly names fire as a covered peril, any damage or loss due to fire would be compensated. Similarly, coverage for vandalism would protect against intentional damage to property. Therefore, the inclusion of common perils ensures a baseline level of protection against frequently encountered risks.

By contrast, policies that cover "all risk" would include a much broader range of perils without the need for them to be named individually, while the incorrect options focus on either a limited selection of perils or misunderstand the types of risks typically covered under Named Perils Policies.