Which term describes an insurance policy that covers only specific perils?

The term that accurately describes an insurance policy covering only specific perils is named perils coverage. This type of insurance explicitly lists the perils that are covered under the policy, meaning that only damages caused by those specifically identified events will be compensated. For instance, if a policy is written to protect against fire, theft, and vandalism, it would only cover damages from those causes.

This approach allows policyholders to understand exactly what risks they are insured against, making it clear and straightforward. It also allows for the possibility of a lower premium, as the insurer is only taking on risk for those particular events.

In contrast, the other terms refer to broader types of coverage. Full coverage typically implies a more extensive range of protections, comprehensive coverage generally refers to insurance that covers a wide array of risks (often for physical damage to vehicles), and open perils coverage means that all risks are covered except those specifically excluded in the policy itself.