insurance
Covered Perils
Definition: The specific risks or events that your insurance policy protects against.
Covered perils are the specific risks or causes of loss that your insurance policy will pay for. Understanding your covered perils is essential to knowing what protection you actually have.
Standard Covered Perils (HO-3 Policy):
- Fire and smoke
- Lightning
- Windstorm and hail
- Explosion
- Theft
- Vandalism
- Damage from vehicles
- Damage from aircraft
- Riot and civil commotion
- Volcanic eruption
- Falling objects
- Weight of ice, snow, or sleet
- Water damage from plumbing/appliances
- Electrical damage
Common Exclusions:
- Floods (requires separate flood insurance)
- Earthquakes (requires separate coverage)
- Maintenance issues
- Pest damage
- Mold (often limited or excluded)
- Sewer backup (may require rider)
- Intentional damage
Named Peril vs. Open Peril:
- Named peril: Only covers specifically listed perils
- Open peril: Covers everything except specific exclusions
Most homeowner's policies are "open peril" for the structure but "named peril" for contents.
Related Terms
Personal Property Coverage
Insurance that protects your belongings inside your home against covered perils.
Exclusions
Specific situations, perils, or types of property that your insurance policy does not cover.
Homeowner's Insurance
Insurance that protects your home, belongings, and liability as a homeowner.
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