What is a Covered Peril?

A covered peril is an event or circumstance that your insurance policy protects you against. An example would be a fire breaking out at your home and your home insurance policy providing compensation as stipulated within your home insurance policy.

The important thing to remember about perils is that they can be quite broad. They can range from the previously mentioned fire to vandalism, to a robbery and more, but the important thing to remember is that for you to be protected from such peril, it must be covered by your insurance policy.

Different insurance policies will have different perils that they cover and to avoid gaps in coverage, it can be important to understand some of the different perils that your insurance policies will cover. Staying protected doesn’t have to be complicated. Get to know some of the more popular covered perils and which insurance policies you will need to keep yourself, your loved ones, and your personal property protected during unfortunate times.

Understanding the Different Types of Perils

Having an understanding of the different types of covered perils your insurance policies will protect against will help you understand which kind of policies you will need. There are different industry terms that can help you navigate the terminology of the insurance world and avoid a misunderstanding. Get to know the different perils and what coverage types your insurance carrier may offer to help protect you against below:

Type of Peril Description of Coverage
Named peril Named peril coverage only protects you when a peril occurs that is from the list presented on your insurance policy.
Open peril Open peril coverage means that your policy will protect you unless your policy has that peril specifically excluded.

Home Insurance Covered Perils

When it comes to home insurance, there are a variety of home insurance policies that may cover different perils and your personal belongings in different ways. Knowing which kind of home insurance you have and what your perils are will help you navigate the specific perils your home insurance policy is protecting you from. Speak with your agent to understand the specifics and take a look below for some of the most common perils facing homeowners today:

  • Aircraft and automobile damage
  • Damage from the weight of ice and snow
  • Explosions/Fire/Smoke
  • Lightning strikes
  • Sudden defects to a household system or damage from an electrical current that is artificially generated
  • Vandalism/theft
  • Water damage (excluding outside flooding)

Most homeowners insurance policies protect against the same perils. There are several different types of home insurance policies, which you can learn about each one and several other questions you may have here. The basic idea for the most popular home insurance policies, HO2, HO3, and HO5, is more in how they cover rather than what they cover. Each policy is different and the best practice is always to speak with a trusted agent. Learn more about some of the most popular home insurance policies available for homes today and how they relate to covered perils:

Policy What’s Covered Key Feature
HO2 Home, personal belongings, protection against liability, and loss of use protection. The most popular basic form of homeowners insurance, perils must be named specifically on your policy for coverage.
HO3 Home, personal belongings, protection against liability, and loss of use protection. The most popular home insurance policies available on the market. They offer an increase in protection by having open perils for your coverage except your personal belongings which remains as a named peril coverage.
HO5 Home, personal belongings, protection against liability, and loss of use protection. A more comprehensive form of home insurance that includes coverage for your personal belongings as an open peril policy.

Auto Insurance Covered Perils

Your auto insurance protects you in different ways depending on the type of coverage you elect to enroll in. One of the best ways to protect your automobile and yourself is through comprehensive coverage which can also be considered “all perils coverage.”

Comprehensive coverage can have a wider range of coverage protection and is there for you to protect against perils that can affect your automobile except for that of a collision. Much like a home insurance policy, it is important to review your policy with your insurance agent to determine how you are protected. Some of the most common perils covered by comprehensive coverage include:

  • Damage from animals
  • Damage from water events
  • Falling objects
  • Fire
  • Grand theft auto
  • Natural disasters such as earthquakes, flooding, or hurricanes
  • Vandalism/theft

Flood Insurance Covered Perils

Essential for any home, even those outside of flood zones when considering as much as 25% of claims come from non-high-risk areas, flood insurance protects you from specific flood events. This is important because the peril must be from a flooding event that comes from outside of your home.

Windstorm Insurance Covered Perils

Homeowners can help protect themselves against the damages that come from the perils of violent thunderstorms, tropical storms, hurricanes, and tornadoes using windstorm insurance. These are policies that are needed as many home insurance coverages may only protect partly against such events. The damage homes can suffer from these perils can be devastating and protecting your home with the right windstorm policy, especially homes in states that are near the coast, can help you rebuild when disaster strikes.

TGS Insurance Protects you From a Range of Perils

Covered perils are the things that wish to disrupt your life and bring stress and financial staring. Through the right products of insurance, you can protect yourself, your loved ones, and your property against these perils. TGS Insurance helps you find the right coverage that fits your needs and budget so that you can keep the protection you need without overpaying. Our team of agents works for you to shop a variety of our top-rated insurance carriers to provide maximum coverage for the lowest price available. 

About Buddy Blouin

Buddy is a content writer for TGS Insurance and has been with the company for a year. He works to create digestible content that provides value to the reader. When he is not writing articles, you'll find him watching sports, grilling, or hanging out with friends.