What Does Excluded Peril Mean?
An excluded peril is a peril not covered in an insurance policy. If one of the listed perils causes a loss, the insurance company does not bear the responsibility of providing financial relief.
Insuranceopedia Explains Excluded Peril
Often, a standard insurance policy covers basic perils, but it will exclude highly costly or uncommon perils. For example, an auto insurance company may not cover animal damage to a car.
Policyholders can normally purchase an endorsement or a separate policy to fill in the coverage gap of an excluded peril. For instance, renters in a flood zone may elect to purchase flood damage coverage to supplement renter’s insurance that excludes this peril.