insurance

Specified Peril

A specific risk or cause of loss that is explicitly named and covered in an insurance policy. Insurance policies using specified perils only provide coverage for the exact risks listed, unlike all-risk policies that cover everything except excluded perils.

Example

“The basic homeowner's policy covered specified perils including fire, lightning, hail, and vandalism, but not water damage from broken pipes.”

Memory Tip

SPECIFIED = 'Specifically Protected Exact Coverage Insurance Features in Every Document' - only the named risks are covered.

Why It Matters

Understanding specified perils helps you know exactly what risks you're protected against and identify coverage gaps that might leave you vulnerable. If a loss occurs from a peril not specifically listed, you won't receive any insurance benefits regardless of the damage amount.

Common Misconception

People often assume that similar or related perils are automatically covered if one is listed, but specified peril coverage is very literal. For example, a policy covering 'lightning' damage might not cover power surge damage from lightning strikes unless power surges are also specifically listed.

In Practice

Anna's basic auto policy lists specified perils including collision, fire, theft, and vandalism. When her car is damaged by falling tree branches during a storm, she files a claim expecting coverage. However, her insurer denies the claim because 'falling objects' or 'windstorm' aren't among her specified perils. She must pay the $4,200 repair cost herself, even though comprehensive coverage would have covered this loss.

Etymology

From Latin 'specificare' (to specify) and Old French 'peril' meaning danger. The concept developed in early marine insurance when policies listed specific sea dangers like storms and piracy.

Common Misspellings

Specifed PerilSpecified PerrilSpecificed PerilSpecified Perile

Related Terms

Broad Form Coverage

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