Homeowners Insurance Perils: What Are They and What Do They Cover?

If you’re shopping for homeowners insurance, no matter what state you’re in, you may have heard the term, ‘peril’.

At Insurance Geek, we know homeowners insurance shopping can be a daunting process, with a good bit of terminology and processes you’re not familiar with.

Let’s break down what a peril is, how it could affect your policy and how to get the best homeowners insurance coverage possible.

What is a Peril in Homeowners Insurance?

A peril is defined as any event or hazard that can damage your property. The perils section in your insurance policy will help you understand what types of perils are covered. For instance, many homeowners don’t have a portion of their policy that protects from flooding damage, so it’s important to know what you’re protected against.

Perils and Risks

You may also see perils called “risks”. A risk may also involve an injury to someone else that occurs on your property, for which you may be found liable.

Perils found on a homeowners insurance policy may include:

  • Vandalism
  • Theft
  • Fire Damage
  • Damage from backed-up pipes or sewers
  • Storms
  • Hurricanes
  • Tornadoes
  • Earthquakes
  • Hail
  • Riots
  • Airplane crashes or other flying object crashes

And many more.

If you don’t see one of the above listed on your policy but feel you need it, you can add different types of protection to your policy based on your needs via endorsement or rider. Chat with your local Insurance Geek and we’ll tell you how to do so.

Contents vs. Building in Homeowners Insurance

When you review your policy – or if you’re currently working toward obtaining a policy – be aware that you’ll see ‘building’ and ‘contents’ coverages on your policy.

The building portion of the policy covers the structure of your home, while contents refer to your belongings and everything else inside. These different parts of the policy have different protections, so make sure you read your policy or are able to understand the differences between the two.

Named Peril and All Peril Policies

A NAMED peril refers to specific losses you may incur as outlined in your policy. If you don’t see this type of loss in your policy, it may not be covered in the event of the loss.

ALL PERIL policies are popular because they cover anything that could potentially happen UNLESS the peril is specifically listed as excluded in the policy. You’ll find that all peril policies are often more expensive because of the level of protection. You may also see higher policy limits on an all peril policy.

How do I know what my insurance covers?

Check out the declarations page of your policy to get the specifics. If you don’t understand how your coverages specifically protect you, your agent can help you understand more. You can also check out this homeowners insurance coverage overview article here.