Multi-peril Policy

What Does Multi-peril Policy Mean?

A multi-peril policy is an insurance policy that offers coverage for multiple causes of loss rather than a single one. These policies provide comprehensive protection and are commonly used in property insurance.

Insuranceopedia Explains Multi-peril Policy

Many insurance policies provide coverage for only one specific type of peril, such as earthquake insurance, which covers only earthquakes. However, purchasing a multi-peril policy often makes financial sense, as it addresses a variety of risks that could result in property damage. This approach eliminates the need to purchase multiple individual policies, offering comprehensive coverage under a single policy to meet various insurance needs. For example, a multi-peril policy might cover fire, vandalism, theft, water damage, and more.