Which type of coverage has fewer perils covered compared to standard policies?

• A. Broad coverage
• B. Named-peril coverage
• C. Special coverage
• D. All-risk coverage

Answer: (B)

Named-peril coverage specifically lists the perils that are covered in a policy, making it narrower in scope compared to standard policies that often provide broader or more extensive coverage. This type of coverage protects against only those specific risks that are explicitly mentioned in the policy. If a peril is not listed, it is not covered, resulting in a limited amount of protection.

Conversely, other types of coverage, such as broad or special coverage, generally include a wider range of risks. Broad coverage expands on basic named-peril coverage, while special coverage (or all-risk coverage) protects against all perils except those that are explicitly excluded. This makes named-peril coverage more restrictive, and thus it has fewer perils covered compared to standard policies.