What is a Peril On a Homeowners Insurance Policy?

When referring to homeowners insurance, a “peril” refers to a specific risk or cause of loss that is covered by the policy. Common perils include fire, theft, vandalism, and certain types of water damage. When you purchase homeowners insurance, you’re essentially paying for protection against certain perils that could cause damage to your home or your belongings.

Policies typically come in two main types:

1. Named Perils: This type of policy covers only the specific perils listed in the policy. For example, if your policy lists fire and theft but not earthquake, then damage from an earthquake would not be covered.
2. Open Perils (or All-Risk): This type of policy covers all perils except for those specifically excluded in the policy. So, if an open perils policy excludes earthquakes, damage from an earthquake would not be covered, but everything else would be.

What are examples of common covered perils on a homeowners insurance policy?

1. Fire and Smoke Damage: Coverage for damage caused by fires, including damage from smoke.
2. Windstorm and Hail: Protection against damage caused by high winds, tornadoes, hurricanes, and hail.
3. Theft: Coverage for loss or damage resulting from burglary or theft.
4. Vandalism: Protection against damage caused by vandalism or malicious mischief.
5. Water Damage: Often includes damage from burst pipes or accidental leaks, but typically excludes flooding (which usually requires a separate flood insurance policy).
6. Explosion: Coverage for damage caused by explosions, such as those involving gas lines or applances.
7. Falling Objects: Protection from damage caused by falling objects, like tree branches or debris.
8. Weight of Snow, Ice, or Sleet: Coverage for damage resulting from the accumulation of snow, ice, or sleet.
9. Civil Disturbance: Coverage for damage due to riots or civil commotion.
10. Damage from Aircraft or Vehicles: Protection against damage caused by aircraft or vehicles that accidentally hit your home.

It’s important to review your specific policy to understand which perils are covered and if there are any exclusions or limitations. Give us a call at 301-948-2010 and one of our experienced professionals will be happy to assist you!

What are examples of uncovered perils on a homeowners insurance policy?

While there a number or perils that are covered on your homeowners insurance policy, there are some perils that are excluded from coverage. Here are a few examples:

1. Floods: Most standard homeowners policies do not cover damage caused by flooding. For flood protection, separate flood insurance through the National Flood Insurance Program (NFIP) or a private insurer is usually required.
2. Earthquakes: Damage from earthquakes is generally not covered under standard homeowners insurance policies. Earthquake coverage can be purchased separately as an add-on or through a specialized policy.
3. Wear and Tear: Homeowners insurance does not cover damage resulting from regular wear and tear, lack of maintenance, or gradual deterioration. For example, damage from old, leaking pipes due to neglect would not be covered.
4. Pests and Vermin: Damage caused by pests like termites, rodents, or insects is typically not covered. Preventative measures and treatments are generally considered the homeowner’s responsibility.
5. High-Value Items: Standard policies often have coverage limits for valuable items such as jewelry, art, or collectibles. You may need to purchase additional coverage or endorsements to fully protect these items.
6. Sewer Backup: Damage from sewer or drain backups is not usually included in a standard policy. However, you can add this coverage as an endorsement.
7. Intentional Damage: Damage caused intentionally by the homeowner or someone living in the home is not covered. This includes vandalism or intentional destruction or property.
8. Business Activities: If you run a business from your home, standard homeowners insurance might not cover related damages or liabilities. You might need a separate business insurance policy or a home-based business endorsement.
9. Neglect or Poor Maintenance: Damage that occurs due to neglect or failure to properly maintain the home is typically not covered. For instance, if a roof leaks because it was not repaired in a timely manner, the resulting damage may not be covered.
10. Government Action: Damage resulting from government action, such as the demolition of property or confiscation, is usually excluded from coverage.

It’s important to read the details of your homeowners insurance policy. Call us at 301-948-2010 with any questions you may have regarding coverages or exclusions. We’ll be happy to assist you!