A peril, in the context of insurance, refers to anything that exposes an individual to the possibility or risk of incurring an injury, damage, or another type of loss for which they purchase an insurance policy. Depending on the policy, it may include fire, theft, car accidents, and so on.
Insurance policies typically list the perils they cover and do not cover perils. Some perils, such as acts of war or natural disasters, are so damaging and affect so many people at once that insurance companies refuse to cover them. For instance, homeowner’s insurance typically won’t cover floods because this peril can destroy an entire region quickly, especially if sea levels significantly rise after a hurricane.
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