What Is a Peril in Insurance?
So, what is a peril? In insurance terminology, peril refers to a situation or event that results in loss or damage to yourself, your property, or your business. An example of this would be a fire destroying your home or commercial property. In this case, your insurance provider would generally cover you for the loss of any personal belongings or items, the cost of repairs, and many medical bills or legal costs associated with the event, up to the coverage limits in your property or homeowners insurance policy.
While a fire is a common peril in insurance terms, it is not the only one. Nor is it included as a peril under every type of policy. That's where our experienced brokers can help.
At Morison Insurance, we want you to have the most comprehensive insurance package possible, and for that to happen, we need to make sure you know and understand peril meaning in insurance terms. Different types of policies include coverage for different perils, and the types of perils included, or not included, under your policy coverage determine what events or scenarios are or aren't covered by your insurance plan.
What Are Some Examples of Perils in Insurance?
We've covered the different types of peril meaning in insurance, but what types of events count as perils? While different insurance carriers and policies have different coverages and rates, some common examples of insurance perils include:
- Fire and smoke damage
- Lightning
- Explosion
- Theft or attempted theft coverage
- Vandalism or other malicious acts
- Wind damage
- Hail damage
- Earthquakes
- Frozen pipes and burst water pipes
- Falling objects
- Collision coverage by vehicles, watercraft, or aircraft
- Civil commotion and riots
- Damage caused by the weight of ice, snow, or sleet buildup
- Full or partial building collapse
- Electrical currents and faulty electrical wiring
- Bursting or overflowing fuel tank
- Equipment failure, including heating, air conditioning, and other household systems
- Accidental water damage, such as a sprinkler system failure or an overflowing toilet
Keep in mind that this is not a universal list of what can or cannot be covered under your perils policy. There are many other perils, including those that have to be specifically listed in a standard policy, such as overland floods or other natural disasters. For a complete list of what can be covered under your peril policy in terms of financial losses and property damage, speak to your Morison Insurance representative about how you can improve your base coverage.
