Peril

A Peril is the event or condition causing the loss or the actual source of damage, such as a fire or flood. Insurance policies will either name specific perils against which the insured is covered, or cover a broad set of perils with named exclusions, as in an ‘all-risk’ policy. A homeowner’s policy might cover the perils of fire and wind but exclude the perils of seismic activity or volcanic eruption. Some perils not covered by a standard policy may be insured against at the cost of an additional premium.