What is 'Named Perils' coverage in an insurance policy?

Named perils coverage is a specific type of insurance policy that only covers risks or perils that are explicitly listed within the policy. This means that if a peril is not mentioned in the list of covered events, the policyholder would not receive compensation for the losses stemming from it. For example, if a named perils policy includes coverage for fire, theft, and vandalism, the insurer will only provide protection against these specific risks. If the property suffers damage from an earthquake, and earthquakes are not listed among the named perils, the policy would not cover that loss.

The other options describe different types of coverage or characteristics that are not applicable to named perils. For instance, policies that protect against all risks generally fall under "open perils" or "all-risk" coverage instead, which is the opposite of named perils coverage. Therefore, the focus of named perils coverage on explicitly stated risks is what makes option B the correct and precise choice.