The correct answer is: B. Named Perils
A named perils policy is a type of property insurance policy that only covers losses caused by specific perils that are listed in the policy. This type of policy is typically less expensive than an all-risk policy, but it also offers less coverage.
An all-risk policy is a type of property insurance policy that covers losses caused by any peril, except for those that are specifically excluded in the policy. This type of policy is typically more expensive than a named perils policy, but it offers more coverage.
A specified perils policy is a type of property insurance policy that covers losses caused by a specific set of perils, but not all perils. This type of policy is typically less expensive than an all-risk policy, but it also offers less coverage than a named perils policy.
Here is a table that summarizes the key differences between the three types of property insurance policies:
| Type of policy | Perils covered | Cost |
| — | — | — |
| Named perils | Specific perils listed in the policy | Less expensive |
| All-risk | Any peril, except for those specifically excluded in the policy | More expensive |
| Specified perils | A specific set of perils, but not all perils | Less expensive than all-risk, but more expensive than named perils |