Insured Peril

What Does Insured Peril Mean?

An insured peril is an event that can cause damage or loss to a property but is covered by an insurance policy that pays for the loss or damage if it occurs.

Insuranceopedia Explains Insured Peril

Property insurance can either be named or comprehensive. In a named perils policy, only the perils specified in the contract are covered. In the more comprehensive insurance (called an all perils policy), the coverage is broader but there are still events that are considered exclusions.

An insurance company might deny coverage for a particular peril because of its high likelihood of occurring. For instance, in a flood-prone area, flood coverage may be considered an exclusion.