Which term refers to a policy only covering specific stated perils?

The correct term for a policy that only covers specific stated perils is named perils. This type of insurance policy explicitly lists and defines the risks or hazards that are covered in the policy document. For example, a named-perils homeowners insurance policy might specify that it covers damage caused by fire, theft, or certain types of water damage, but it would not cover other risks unless they are explicitly mentioned.

Named perils coverage provides clarity for the policyholder, as it outlines exactly what is included, thus allowing them to understand the protections they have. This specificity can be beneficial for premium pricing, as the insured only pays for the risks they want to cover.

In contrast, open perils and all risk coverage typically mean that the policy covers all perils except for those specifically excluded, leading to broader protection than named perils. Comprehensive coverage also aligns more with broader terms and inclusivity, further differentiating it from named perils. Hence, the precise definition of coverage makes named perils the correct choice in this context.