What is covered by a named-peril approach in insurance policies?

The named-peril approach in insurance policies specifically covers only those risks or perils that are explicitly listed in the policy documentation. This means that if a peril is not mentioned, it is not covered under the policy. For instance, if the policy lists fire, theft, and vandalism as covered perils, then only damage resulting from those specific events would be compensated. Any damage resulting from unlisted perils would not be covered. This contrasts with an all-risk or open-peril policy, which would cover all risks unless specifically excluded. This distinction is crucial for understanding the scope of coverage provided by different insurance policies.