What type of coverage includes fire, theft, and explosion?

The coverage that includes fire, theft, and explosion is referred to as "Specified Perils." This type of insurance provides coverage specifically for those perils that are individually listed in the policy. As a result, if your vehicle is damaged due to a fire, stolen, or involved in an explosion, you would be compensated for the losses associated with those specific risks.

Specified Perils is distinct in that it does not provide blanket coverage against all possible risks; instead, it limits coverage to only the situations explicitly mentioned in the policy. Understanding this can help you discern why other options might not apply. For instance, Comprehensive coverage offers more extensive protection, including many perils beyond just those specifically listed, while options like Collision or Upset focus mainly on damage resulting from collisions with other vehicles or objects, and All Perils combines features of both Comprehensive and Collision coverage. This distinction is crucial for policyholders to ensure they have the right type of coverage for their needs.