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EXPLANATION OF NAMED PERIL VERSUS ALL RISK
A "peril" is defined as a cause of damage or loss. To be covered
for damage or loss under a "basic " contract, the damage or loss must
be caused by a peril that is "named" or listed in the contract. Consequently,
if damage or loss is caused by a peril that is not named, there is no coverage.
In addition, the contract's exclusions must also be considered in determining
coverage.
In a "special " contract, it is not necessary to name or list the
insured perils since the intent is to cover all risk of damage or loss. Here,
too, the contact's exclusions must be considered; however, the "special
" form of coverage provides a much greater coverage quality.
Note that "special " coverage should not be construed to mean "all
loss" coverage. Certain types of loss are definite and therefore not insurable.
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