What Is a Covered Peril?

A covered peril is an occurrence that can result in property damage. If a covered peril causes damage to your home, your homeowners' insurance policy will cover the costs.

Learn more about the perils covered by homeowners insurance and how to determine which events are covered by your policy.

Definition and Examples of a Covered Peril

A peril is an event that can cause loss or damage to your home in the context of homeowners insurance.

• Alternate name: Hazard insurance

Your policy includes a covered peril. If your home suffers loss or damage as a result of that type of peril, your insurance company will reimburse you for a predetermined amount to cover the damage.

If a peril is excluded, you will not be covered for any damage it may cause. For example, if a tornado hits your area and damages your home, your homeowner's insurance would pay for the repairs if tornadoes were a covered peril in your policy. However, if the policy did not cover this peril (usually referred to as a "windstorm" in policies), the repairs would not be covered.

How Do Covered Perils Work?

A homeowners insurance policy covers your home, property, garage, and other structures against various perils. You can file a claim with your insurance company if your home is damaged by a peril covered by your policy. The insurance company then pays for the damage or reimburses you for the repair costs.

An insurance adjuster may visit your home to assess the damage in order to approve your claim. It is their responsibility to ensure that it was caused by an event that your policy considers dangerous. They will also decide what kind of settlement the insurance company will offer.

Perils can also refer to the cause of an injury for which you may be held liable, such as injuries suffered by a visitor on your property.

Damage from the following perils may be covered by homeowners insurance:

• Water
• ​Fire
• Theft
• Earthquake
• Vandalism

A standard homeowner's insurance policy does not cover all perils. Flood insurance, for example, is not included in homeowners insurance and must be purchased separately. Excluded perils are known as "uninsured perils." They are also known as "uninsured risks" or "exclusions."

Your policy documents will specify which perils are and are not covered. Some hazards or risks may be added at an additional cost by endorsement or rider.

Named Peril vs. Open Perils (All-Risk) Insurance Policy

The insured perils are always specified in the policy, with the exception of an open peril or all-risk policy.

A named perils policy only covers losses caused by specific hazards and events that are explicitly stated in the policy wording. An open perils policy only specifies the risks that are not covered.

Because a named peril policy covers only specific hazards, it is usually less expensive than an all-risk or open perils policy. Extra coverage can be added by purchasing additional coverage policy endorsements.

An open perils policy provides more comprehensive coverage and thus costs more.

Types of Covered Perils

Based on the form listed, your policy declaration page (or "dec") will show you what type of policy you have.

On the "dec" page, the insured perils will not be specifically listed. Instead, they will be included in the policy contract language. Any exclusions will also be reflected in the language. As a result, it's critical that you read them, especially if you have an open perils policy. Perils that are covered can include a wide range of hazards and damages.

Fire

A hostile fire is caused by flames produced by a spark or glow, or by a smaller flame. A hostile fire is one that burns in places where it is not supposed to burn, such as a bed or curtains. The fire peril covers direct damage caused by a hostile fire.

Lightning

Lightning-caused damage or fires are both covered by the lightning peril. Lightning-related damage to a home's electrical system or appliances is also covered. Any electrical damage caused by the power company, on the other hand, is not covered.

Explosion

Explosion coverage varies depending on the policy. A policy, for example, may only cover damage from explosions that start within the insured structure. However, your policy may cover an explosion that occurred outside your home and caused damage.

Windstorm

High winds cause windstorm damage. Windstorms, which include cyclones, tornadoes, and hurricanes, cause damage to the property's exterior. This coverage may cover the inside depending on the cause and extent of the damage.

If the wind causes an opening to the inside, such as blowing out a window, the interior is usually included. Some policies have additional deductibles for windstorm damage.

Hail

Hail damage may be covered by insurance policies. The inside of the structure is usually only covered if the hail itself breaches the structure and causes internal damage. The damage would not be covered if the hail came in through a window you opened because the hail did not breach the outside walls on its own.

Riot or Civil Commotion

Three or more people causing property damage is commonly used to define a riot. A civil commotion occurs when a large number of people cause damage.

Aircraft

Any flying machine, such as a balloon, helicopter, airplane, or spacecraft, can cause aircraft damage. You should check with your insurance provider about drone damage.

Snow

Some insurance policies include snow as a peril. It frequently includes ice, snow, and sleet damage to your home.

Water and Sewer

In some states, insurance companies are required by law to provide coverage for water and sewer backup damage to your home. To cover damages, you may need to purchase separate sewer insurance in some states.