Glossary
Peril, defined
A specific cause of loss, such as fire, wind, hail, theft or a burst pipe. Policies are written around causes: some list the ones they pay for, others pay for any cause except the ones they list.
In practice
The word decides whether a loss is covered. A roof torn off by wind is a wind loss; a roof that leaks because it wore out is not a cause the policy names, so the leak is not paid. When a loss has more than one cause, the policy's wording on which cause controls decides the outcome, and that wording differs by form.
Flood and earthquake are the two causes most often excluded from a standard home policy and insured separately.
A worked example
Suppose a monsoon storm drops a tree on a roof and rain then soaks the ceiling below. Wind is a covered cause on nearly every form, so the roof and the water damage that followed are paid, less the deductible. Suppose instead the ceiling stained slowly over a year from a worn flashing; wear is not a named cause, so nothing is paid. Hypothetical, to show the distinction.
Applies to: Home InsuranceFlood Insurance