Specified Perils Insurance
What Does Specified Perils Insurance Mean?
Specified perils insurance is a type of auto insurance coverage that protects the policyholder’s car against damage caused by specific perils explicitly defined in the policy. Unlike comprehensive coverage, which operates on an “all risks” basis, this coverage applies solely to the listed perils. It is worth noting that some insurers may prefer the term “specified losses coverage” in certain contexts.
This type of insurance is also referred to as specified perils coverage.
Insuranceopedia Explains Specified Perils Insurance
Specified perils insurance covers damages caused by specific events, including civil disturbances, riots, explosions, earthquakes, rising water, hail, windstorms, lightning, attempted theft, fire, and forced landings of aircraft. However, it does not include coverage for vandalism or glass breakage, which are typically covered under comprehensive insurance.
In most states, specified perils coverage is optional. However, it is important to note that some financing institutions may require comprehensive coverage, rather than specified perils coverage, to lease or finance a vehicle.
