What is a Named Peril?
Peril is an insurance term that identifies certain terrible events, like a firenado or theft, that could cause property damage or loss. There are 16 named perils that insurers cover in the following standard insurance policies:
Covered Named Perils
The 16 named perils covered by homeowners, renters, and condo/coop/townhouse insurance policies are:
- Riot(s) and civil commotion(s)
- Malicious mischief and vandalism
- Fires and electrical storms/lightning
- Windstorm(s) and hail
- Damage to property caused by a vehicle(s)
- Sudden and unexpected bulging, burns, cracks, and tears of:
Steam and hot water heating systems
Automated fire sprinkler systems
- Damage from aircraft(s)
- Unexpected and sudden damage caused by electrical currents (power surges) not generated by natural weather conditions (transistors, tubes, and comparable electronic parts excluded)
- Freezing of plumbing, heating, air conditioning, or automated fire sprinkler systems, and household appliances
- Water overflow or accidental discharge of steam or water from within:
Automatic fire sprinkler systems
- Falling objects
- Weight of snow, ice, and sleet
- Volcano eruptions
Excluded Named Perils
In a named peril insurance policy, you can also find a list of perils specifically excluded on your declarations page. They are:
- Earthquakes. You can purchase separate earthquake insurance.
- Floods. You can purchase separate flood insurance.
- Mudslides. You can purchase separate mudslide insurance.
- Landslides. You can purchase separate landslide insurance.
- Sinkholes. You can purchase separate sinkhole insurance.
- Nuclear accidents
- Other perils listed in your policy
While they are not named perils, normal wear and tear and inadequate maintenance claims get denied. You must keep up with proper care to ensure your property lasts its expected lifespan.
Named Perils in Homeowners Insurance (HO3)
Homeowners insurance includes coverage for your home (dwelling) and personal property (personal belongs, like furniture, bikes, musical instruments, etc.). The property insurance portion of your policy applies named-peril coverage to both your dwelling and personal property.
Named Perils in Renters (HO4) & Condo/Coop/Townhouse Insurance (HO6)
Because renters insurance and condo - coop - townhouse insurance policies only cover your personal property, dwelling coverage is moot. Your building's master insurance policy covers your dwelling.
Named Perils vs. Open Perils
There are only 16 covered perils in most insurance policies. Conversely, an open perils policy covers anything that damages your property, except excluded perils listed on your declarations page.
For example, water damage is a hot issue in home insurance. It is one of the top claims and costs insurers billions each year. Due to those increasing costs, insurers categorize the types of water damage they cover and do not cover. Water damage in basements (below-grade) is an excellent example of a water damage exclusion in most policies.
Check your declarations page to be sure what your coverage includes.
Get a Named Perils Insurance Coverage Quote
We compare 40+ top insurance company policies to find you the best coverage at the best price. We can help you with renters, condo, coop, townhouse, or homeowners insurance quotes and comparisons. You may also get a free home perils risk report for your exact address to determine what risk coverages you need.
Hope that helps!
At your service,