What is named perils coverage?
Named Perils or Specified Perils coverage protects you from the perils specifically listed in your insurance policy only. Perils not named are excluded from this type of coverage.
Depending on the type of home insurance policy you have, some of all of your property may be covered against Named Perils only. A good example of Named Perils coverage is broad form home insurance, in which your building is protected against all risks, but your personal belongings are protected against specific perils only.
What’s covered by named perils?
In general, a Named Perils policy will protect your property from damage due to:
- Fire, smoke, lightning, and explosion
- Windstorm and hail
- Theft and attempted theft
- Rupture, freezing and water escape
- Vandalism or malicious acts
- Civil disturbances and riot
- Impact by vehicles, watercraft, or aircraft
- Falling objects
- Weight of ice, snow and sleet
- Collapse of a building or any part of a building
- Sudden and accidental damage from an electrical current
- Bursting or overflow of a fixed domestic fuel tank, including its apparatus or pipes
- Accidental damage such as a leaking toilet causing water damage
What’s excluded from named perils
In addition to the standard exclusions common to most forms of home insurance in Ontario, anything not named in your policy is excluded by named perils coverage. The main exclusions from a named perils policy are:
- Mysterious disappearance (lost items)
- Accidental damage such as rips or stains
- Power surges
Another difference between a named perils policy such as broad form vs. all risk is the burden of proof. In Ontario it is your responsibility as the holder of a named perils policy to provide evidence that any loss occurred is due to a named peril. In contrast, with an all risks form, the onus is on your insurer to prove that an exclusion applies in order to deny coverage.