Perils, as they pertain to home insurance, are causes of loss such as theft or wind. In conjunction with your policy, the term “Named Peril” refers to the perils insured against. Home insurance policies offer coverages on either “Named Peril” or “All Peril” (sometimes referred to as “Open Peril” or “All Risk”) bases. “All Peril” covers all perils not excluded by the policy while “Named Peril” only covers specific named perils in the policy. A standard home insurance policy is usually “All Peril” on Dwelling and Other Structures and “Named Peril” on Personal Property.
While “All Peril” insures against more causes of loss, “Named Peril” coverages are the most common causes of loss and still offer good protection, especially for personal property. It can vary from company to company, but the perils insured against under “Named Peril” are:
- fire or lightning
- windstorm or hail
- riot or civil commotion
- vandalism or malicious mischief
- falling objects
- weight of ice
- snow or sleet
- accidental discharge or overflow of water or steam
- sudden and accidental tearing apart
- burning or bulging
- sudden and accidental damage from artificially generated electrical current
- volcanic eruption
Your policy jacket will define the type of coverage you have as well as any exclusions.