insurance

Insured Peril

A specific risk or cause of loss that is covered by an insurance policy. These are the particular dangers or events that the insurance company agrees to protect against, such as fire, theft, or collision.

Example

“Fire was an insured peril under Janet's homeowners policy, so her insurance company paid for the kitchen damage caused by the grease fire.”

Memory Tip

Think 'Perils that are Insured' - these are the specific dangers your policy promises to cover.

Why It Matters

Knowing which perils are insured helps you understand exactly what protection you have and identify potential gaps in coverage. This knowledge prevents unpleasant surprises when filing claims and helps you make informed decisions about additional coverage needs.

Common Misconception

Many people assume their insurance covers all possible risks and don't realize that policies only cover specifically listed perils or exclude certain ones. They may discover too late that their particular loss wasn't from an insured peril.

In Practice

Mark's homeowners policy lists fire, theft, and windstorm as insured perils but excludes flood and earthquake. When a $15,000 fire damages his garage, the claim is covered because fire is an insured peril. However, when a $30,000 flood damages his basement the next year, he receives nothing because flood is not an insured peril under his standard homeowners policy. He would need separate flood insurance for that protection.

Etymology

Combines 'insured' from Latin 'securus' (secure) and 'peril' from Latin 'periculum' (danger), literally meaning 'dangers that are secured against' by insurance.

Common Misspellings

insurred perilinsurered perilinsured pearlensured peril

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