Named Perils Insurance Policy: What’s That?

When it comes to insurance coverage, there are two main types of policies: all risks policies and named perils policies. A named perils policy, such as a wind only or a flood policy, covers only specific perils listed in the policy (such as, respectively, wind or flood), while an all risks policy covers all perils except those specifically excluded.

When it comes to the burdens of proof for coverage exclusions, the named perils policy shifts the burden of proof to the policyholder because the burden is on the policyholder to prove a loss caused specifically by the covered peril in order to trigger coverage. Policy exclusions are, in a way, subsumed by the policy’s grant of coverage for a single peril because if only a single peril is covered it can be assumed that all other perils are not covered. This means that the policyholder must prove that the damage was caused by a covered peril listed in the policy in order to trigger coverage. On the other hand, with an all risks policy, the burden of proof on the policyholder is simply to show damage occurring during the policy period and, if an exclusion is raised by the insurer, is on the insurance company to prove that the damage was caused by a peril specifically excluded in the policy.

If you have a wind only policy and your property is damaged in a hurricane, the burden of proof is on you to prove that the damage was caused by the wind and not by flooding (or something other than wind), which would not be covered under your policy. This can be a difficult task, as the evidence may be ambiguous or unclear. This is a reason why it’s so important for policyholders to understand their burden of proof with respect to a named perils policy and ensure that they have engaged the appropriate experts to assist in parsing through issues of causation (what caused the damage) and to estimate the covered loss on their behalf. 

This is where Parrish Law can assist. We have extensive experience dealing with insurance claims and can help you navigate the claims process. Our network of qualified experts can help you gather the evidence needed to prove that the damage was caused by wind and not by another excluded peril. 

It’s important to note that dealing with an insurance claim can be a stressful and emotional process. Your property is likely a significant investment and damage can be devastating. At Parrish Law, we understand the emotional toll that property damage can take on our clients. We work hard to not only provide legal representation, but also emotional support throughout the claims process. Our clients are treated like family, and we are dedicated to helping them get the coverage they deserve so they can get back to their normal lives as soon as possible.

In conclusion, if you have a named perils policy such as a wind only policy, it’s important to understand the burdens of proof and to be prepared to fight for coverage accordingly. Parrish Law can help you navigate the complex claims process and fight for the coverage you are entitled to. Don’t let the insurance company deny or limit your coverage – contact Parrish Law today for a free consultation.