Property and valuation
Named perils
Named perils coverage insures only the causes of loss specifically listed in the policy, placing the burden on the insured to show the loss came from a listed peril.
Reviewed September 2026 · Exam outline effective September 1, 2026
In plain English
A named-perils form is a list. If the cause of loss is on it, the analysis continues to exclusions and conditions. If the cause is absent from the list, coverage does not attach in the first place.
This structure also assigns the burden of proof. Because the grant is limited to listed causes, the insured is generally the party establishing that the loss came from one of them.
Why the exam tests it
Half of the named-versus-open distinction is the burden question, and the exam tests whether candidates can state which party has to establish what.
The trap
Reaching for an exclusion when the cause simply is not listed. On a named-perils form an unlisted cause fails at the grant, and citing an exclusion signals the wrong analytical path.
Worked example
A basic form lists fire, lightning, and windstorm among covered causes. A loss caused by gradual seepage is not on the list, so coverage does not attach at the grant, and no exclusion analysis is required to reach that conclusion.
Full course
Study this with the complete Texas All-Lines course
This concept is covered in depth in the "Causes of Loss, Exclusions & Concurrent Causes" lesson, alongside every other topic on the content outline.
Related terms
- Open perilsOpen perils coverage insures direct physical loss from any cause except those the policy excludes, shifting the analytical focus from the list of covered causes to the list of exclusions.
- PerilA peril is the cause of a loss, such as fire, windstorm, hail, theft, or collision.
- ExclusionAn exclusion is policy language that removes a cause of loss, type of property, or category of liability from coverage that the insuring agreement would otherwise have granted.
- Insuring agreementThe insuring agreement is the part of the policy where the insurer states what it promises to pay for, creating the grant of coverage that every later exclusion and condition narrows.
Compared side by side
- Named Perils vs. Open PerilsNamed perils and open perils describe two opposite drafting strategies for defining what a property policy covers. The practical consequence is who has to prove what, which makes this one of the highest-yield distinctions on the property portion of the exam.
- Proximate Cause vs. Concurrent CausationLosses rarely arrive with a single tidy cause. Proximate cause and concurrent causation are the tools for deciding which cause controls when several are present.
- Dwelling vs. Homeowners PolicyBoth forms insure residential property, and they package coverage differently. Knowing which package a question describes prevents the common error of assuming a coverage that the form does not include.
Exam topics using this term
- Risk, peril, and hazardThree words candidates use interchangeably in conversation and must separate precisely on the exam.
- Covered causes of loss on the Texas All-Lines examHow the exam tests the burden of proof difference between named perils and open perils, and why that difference decides ambiguous-cause questions.
Sources
- Pearson VUE — Texas Department of Insurance licensing exams
Scheduling, candidate handbook, content outlines, test-center rules, and application timing. Reviewed 2026-07-21.
Requirements, fees, forms, exam details, and deadlines can change. Verify the current rule with the linked authority before scheduling, applying, renewing, or handling a real claim.
For exams on or after September 1, 2026. If your exam is scheduled earlier, use the outline that applies to your exam date. Texas Exam Academy is independent exam preparation and is not affiliated with or approved by the Texas Department of Insurance or Pearson VUE. Verify current eligibility, fees, forms, and requirements with the responsible authority.