Named Perils
Named perils are specific damages or losses listed in your policy if any of these ruin your property, you’ll be covered.
Named perils are specific damages or losses listed in your policy – if any of these ruin something you own (aka your personal property), your coverage will kick in. Now that we’ve given you a TL;DR named perils definition, let’s dive a bit deeper into how named perils work and what it all means for your insurance policy.
What are named perils, exactly?
Zooming out a bit, insurance is there to protect you and your stuff from sudden, unexpected events. But what’s defined as sudden and unexpected?
That’s where named perils come in.
Named perils are a bunch of bad things, listed out in your policy, that could happen to your personal property. They apply to direct, physical loss or damages so, for example, if a fire broke out (a named peril) ruining your couch, TV, and computer, you could file a claim and your insurer would financially help you out.
You’ll find the named perils in the ‘Perils Insured Against’ section of your insurance policy but take note: while there are usually 16 named perils on your policy, some states have less (Texas, for example, has only 15).
We’ll break these down next.
The 16 named perils covered in insurance
If the following insurable perils befall anything you own (your personal property), you’ll be able to file a claim and receive compensation from your insurer, minus your deductible, if it’s approved.
Keep in mind that if one of these perils happens to your stuff outside of your home, you’ll also be covered.
16 named perils:
- Fire or lightning
- Windstorm or hail
- Explosion
- Riots
- Aircraft
- Vehicles
- Smoke
- Vandalism
- Theft
- Falling objects
- Weight of ice, snow, or sleet
- Accidental discharge or overflow of water or steam
- Sudden and accidental tearing, cracking, burning, or bulging
- Freezing
- Sudden and accidental damage due to short circuiting
- Volcanic Eruption
What isn’t covered under named perils?
Named perils don’t cover a few different scenarios. First off, it doesn’t cover things that could have been prevented.
For example: Say you’ve had the same microwave for 15 years. It doesn’t really heat stuff up anymore, but hey, it still turns on, and you’re on a tight budget living in NYC and all. If that microwave short circuited and caused a fire destroying your stuff, your insurance wouldn’t necessarily cover the losses.
Why’s that?
This would go under the category of situations that could have been avoided with proper maintenance and care. Now, if it was a brand new microwave and the same thing happened, you’d be covered, since it’d definitely fit the parameters of “sudden and accidental.”
On another note, while most standard insurance policies will cover you for water damage caused by broken pipes and overflow, floods aren’t covered. Same goes for other natural disasters.
It also differs by state – in California, for example, stuff that’s lost or damaged due to earthquakes isn’t covered by your typical Golden State renters or homeowners insurance policy.
Moral of the story? Make sure to double check your policy for exclusions and, if needed, get additional coverage to protect your stuff against the perils of mother nature.
Named Perils FAQs
Someone stole your bike… is it covered?
Yes, your personal property is covered at home, and everywhere else. As long as it was locked, you should be able to make a claim and get money back (after your deductible, of course).
If it wasn’t locked, that’d be considered negligence and your insurer most likely wouldn’t cover you in this case.
Your upstairs neighbor left the faucet on and it flooded your apartment… is your stuff covered?
Yes, most water damage to your place that isn’t caused by mother nature will be covered under your basic home or renters policy.
You have a serious mold problem in your place… are you covered?
No, this doesn’t fall under the definition of ‘sudden or accidental.’ So that gross stuff growing in your shower, or underneath your sink? You should address it asap because it isn’t covered under your policy.
Reddit asked, we answered
What's the difference between All Risk vs Named Perils home insurance?
All Risk (also called open peril) covers everything except specific exclusions. Named Perils only covers events specifically listed in the policy like fire, theft, and windstorm. All Risk is generally the stronger choice because it covers unexpected situations that Named Perils might miss. Most HO3 policies use open peril coverage for the dwelling structure, though personal property is typically covered on a named perils basis. For condo policies (HO6), coverage can vary – some states use open peril, others named perils, so what applies to you depends on where you live. At Lemonade, your condo policy type depends on your state. Either way, it’s worth checking your policy or contacting your insurer directly to confirm exactly what type of coverage you have and what that means for your specific situation. Read the full thread on Reddit
Is a named peril policy good enough for home insurance?
Usually not. Open peril (HO3) coverage is the better choice for most homeowners. Named peril policies only cover what’s explicitly listed, which can leave gaps for unexpected situations. With an HO3, your dwelling is covered on an open peril basis, though personal property is typically still covered for named perils. Unless you’re in a very low-risk area and purely trying to minimize cost, HO3 tends to offer meaningfully broader protection. The premium difference doesn’t always justify the coverage gaps a named peril policy can create. Read the full thread on Reddit
Are there homeowner policies that don't cover tornado damage?
Most standard HO3 policies cover tornado damage since tornadoes cause windstorm damage, which is a covered peril. But some insurers in tornado-prone areas limit coverage, charge separate wind deductibles, or require separate wind coverage. Named peril policies might not cover tornadoes unless windstorm is explicitly listed. Check your policy for wind and hail exclusions, especially if you’re in Tornado Alley. Read the full thread on Reddit
Should I get HO3 or HO6 insurance for a townhome?
It depends on how you legally own the property, not just what the building looks like. If you own the structure and the land, you likely need an HO3. If the association owns the exterior and you’re only responsible for the inside of your unit, an HO6 is typically the right fit. The easiest way to find out: pull up your governing documents. Condos have a Master Deed or CC&Rs. Co-ops have a Proprietary Lease. Townhomes have CC&Rs and a plot map. These tell you exactly where your responsibility ends and the association’s begins, which determines what your policy needs to cover. One thing to watch out for: if you have an HO6 but you’re actually on the hook for your own roof and siding, you could be underinsured without knowing it. At Lemonade, we offer both HO3 and HO6. Not sure which one you need? Start with your governing docs, then reach out and we can help figure out the right fit. Read the full thread on Reddit
A few quick words, because we <3 our lawyers: This post is general in nature, and any statement in it doesn’t alter the terms, conditions, exclusions, or limitations of policies issued by Lemonade, which differ according to your state of residence. You’re encouraged to discuss your specific circumstances with your own professional advisors. The purpose of this post is merely to provide you with info and insights you can use to make such discussions more productive! Naturally, all comments by, or references to, third parties represent their own views, and Lemonade assumes no responsibility for them. Coverage and discounts may not be available in all states.
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