Insured Peril

What Does Insured Peril Mean?

An insured peril is an event that can cause damage or loss to property and is covered by an insurance policy, which will pay for the resulting loss or damage if the event occurs.

Insuranceopedia Explains Insured Peril

Property insurance can be either “named” or “comprehensive.” In a named perils policy, only the specific perils listed in the contract are covered. In the broader, more comprehensive type—known as an all-perils policy—most perils are covered, though certain events may still be listed as exclusions.

An insurance company might exclude a peril from coverage due to its high likelihood of occurring. For instance, in flood-prone areas, flood coverage is often excluded from standard policies.