Which type of policy lists specific perils or causes of loss that are covered under the contract?

Named Peril Policies are designed to cover only those specific perils explicitly listed in the policy document. This means that if a peril is not named, the policy will not provide coverage for losses resulting from that peril. This approach gives clear boundaries regarding the coverage offered, allowing policyholders to understand exactly which risks are insured against.

On the other hand, Multi-Peril Policies typically cover a wide range of perils, often used in commercial situations, and provide broader protection than named peril policies. Moral hazard refers to a situation in which the behavior of the insured may change as a result of having insurance, potentially leading to greater risk. Mortgagee rights pertain to the rights of a lender regarding property securing a mortgage and are not related to types of loss coverage in insurance policies.