Peril can be a scary word, even when you’re translating from the insurance world. Peril is often used to describe a cause of loss or damage. In other words, it is a potential event which could lead you to file a claim.
So, when you’re getting a quote from your insurance agent, take the time to read and understand your coverage. You don’t want to be surprised after something happens and you file a claim. Here are some guides to perils that may help you navigate your policy.
What Is an Insurance Peril?
A peril is a cause of loss, which could cause damage to your property. For example, if lightning strikes a building and it catches fire, the peril would be lightning. If damage is caused by a tornado, the peril would be tornado. Damage resulting from a hurricane, such as Hurricane Ida, falls under the peril of named storm
Insurance policies specify which perils are covered, making it important to understand how each peril is defined. For example, named storm coverage applies to damage caused by a hurricane or tropical storm, but it does not extend to flooding from storm surge. Flood is a separate peril and typically requires a distinct flood insurance policy.
Customizing Your Policy
When considering policies, look for coverage which provides you with options and control. Many home and landlord insurance policies work with one-size-fits-all perils and coverages.
Obviously, it is important to get protect your property, but there are ways to reduce the cost of your policy and its annual premium. Orion180 empowers you with flexibility to select the perils that matter to you. Customization is a tool for savvy property owners, especially those with high-value properties, older homes, or homes in areas more prone to risk. Orion180's FLEX Home Insurance and DP Landlord Insurance allow you to select the perils that concern you the most, with some mortgage-based restrictions.
Common Types of Insurance Perils
Your policy will include a set of standard perils that commonly threaten homes and property. These may include:
- Fire
- Lightning
- Wind
- Hail
- Theft
- Tornado
- Named Storm
- Wildfire
- Miscellaneous – a broad category that includes things like aircraft, explosion, falling objects, riot, civil commotion, and vehicles.
Managing Risk Through Insurance
Knowing which perils are covered by your insurance policy helps you understand your level of protection and potential risk. By identifying common perils and transferring some of the risk to an insurer, you gain protection against potentially devastating losses.
The time to understand what is covered in your policy – and what is not covered – is when you are discussing options with your agent. Orion180 goes beyond one-size-fits-all coverage with true customization. Talk to your agent today, or get a free quote here!
This information is meant to help you understand insurance perils, but your actual coverage will depend on the specific terms and details in your insurance contract. For questions about your exact coverage, it’s always best to review your policy or speak with your insurance agent.
