What type of loss does a "named perils" policy cover?

A "named perils" policy covers specified risks of loss, meaning it explicitly lists the perils that are covered under the policy. This type of insurance outlines exactly which risks are included, such as fire, theft, vandalism, or windstorm. If a loss occurs due to a peril not named in the policy, that loss would not be covered.

In contrast, "all risks" or "open perils" policies cover any risk of loss that is not specifically excluded, which is broader than the named perils approach. Focusing solely on fire-related injuries or theft-related injuries would limit coverage too narrowly, as named perils encompass a variety of risks that can cause damage, not just those related to fire or theft alone.