Named Perils Insurance Policy

Most insurance policies cover almost anything that happens. These are known as "all-risk policies." They might have some dangers specifically left out of the policy (hurricanes, terrorist attacks, raptor infestations), but in general, whatever happens, the insurance company has your back.

Named perils policies work the opposite way. The policy only covers the risks outlined in the policy.

You sign up for a named perils policy that protects you against raptor attacks. That risk represents the only thing the insurance covers. If a velociraptor attacks, the insurer will cover any damage. But nothing else.

Then your house is destroyed by a dilophosaurus. You're out of luck. You are only covered for the raptors. Any other dinosaur attacks fall outside the perils named in the coverage.