Peril
Definition
A specific cause of loss that may trigger insurance coverage. Examples include fire, windstorm, theft, vandalism, and lightning. Policies are either open-peril (covering all perils except those specifically excluded) or named-peril (covering only perils specifically listed). Understanding which perils your policy covers is fundamental to knowing your protection.
When This Matters
Your HO-3 homeowners policy covers your dwelling on an open-peril basis — meaning it covers damage from any cause unless specifically excluded, such as flood or earthquake.
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