What is a Peril in Home Insurance?

A peril is an event that causes damage to your home or belongings. Fire, theft, wind, and hail are examples of common perils. If your home is damaged, filing a claim depends on the perils that are covered under your homeowners' insurance policy.

Policies use peril-based language to define your coverage. If the peril is covered, your insurer may help cover the cost of repairs.

Home insurance policies sort perils into two categories: covered and excluded. Covered perils are events your policy protects against. Excluded perils are listed in the policy as events that do not qualify for coverage.

How the Peril Meaning Affects Insurance

In insurance, a peril is the cause of loss or damage. It's the specific event that leads to a claim, such as a fire burning part of your home or a wind storm tearing off your roof.

Perils apply to both the structure of your home (dwelling coverage) and your belongings (personal property coverage). For example, if lightning strikes your house and causes a fire, both the damage to the building and any destroyed items may be covered.

Types of Perils in Home Insurance

Home insurance policies handle perils in two ways: either by listing specific events that are covered (named perils) or by covering all events except those specifically excluded (open perils).

A covered peril opens the door to filing a claim. The type of policy you have determines the scope of your protection and whether a peril is typically covered or excluded.

Named Perils

A named perils policy only covers the events listed in the policy. If damage occurs from a peril that is not listed, the claim may be denied. Common perils include unforeseen events, such as fire, theft, some natural disasters, or sudden water damage.

Open Perils (Also Called All-Risk Coverage)

An open perils policy covers sudden and accidental damages, except those specifically excluded by the policy. In these policies, causes like flood, earthquake, neglect, or war may be excluded.

HO-3 policies usually provide open peril coverage for the structure of your home and named peril coverage for personal property.

A DP3 policy also uses open perils coverage for the home, but it’s tailored for properties such as rental homes, vacation homes, or properties where the owner is not the occupant. It’s a flexible yet specialized option for landlords or individuals who need cover but don’t live in the home full-time.

As open peril policies provide broader protection, they tend to be more expensive. However, they can offer peace of mind in areas where unpredictable risks are more prevalent.

What Is an Example of a Common Peril?

Standard policies cover common perils that are considered sudden and accidental. These events, which can cause serious damage to your home or belongings, are typically covered under HO-3, DP3, and HO-6 policies.

Here are some of the most commonly covered perils:

• Fire or smoke: Often one of the most financially damaging events. Most policies include coverage for both the structure and personal property.
• Windstorm or hail: Common in coastal areas like Florida and South Carolina. Coverage can vary, and some policies may carry a separate hurricane deductible.
• Theft: Covers stolen personal property, often including coverage for forced entry-related damage.
• Vandalism: Protects against intentional property damage caused by someone else.
• Lightning: Includes both fire damage and direct electrical harm to appliances or systems.
• Falling objects: Includes damage from trees or debris.

Covered perils form the backbone of your policy. If the event that causes the damage is on this list, it may qualify as a covered claim. However, it’s always essential to review your specific policy because some perils may be limited or come with specific conditions.

Perils vs. Hazards: What’s the Difference?

Perils and hazards in home insurance serve different purposes. A hazard increases the chance of damage, but a peril is the actual cause of it.

Here's a chart for quick comparison:

A hazard doesn’t directly cause damage, but it raises the likelihood that damage could occur.

There are two main types of hazards:

• Physical hazard – A visible or tangible condition. For example, old or faulty wiring increases the risk of a fire.
• Moral or behavioral hazard – Actions or choices that raise the risk of a loss. For instance, neglecting home maintenance or making frequent small claims could be viewed as behavioral risks.

Insurance companies consider hazards during the underwriting process. While your policy doesn’t cover hazards, they can influence what you’ll pay for coverage or whether the company will offer a policy at all.

What Perils Are Usually Excluded?

Not every event that causes damage is covered by a standard homeowners' insurance policy. Some perils are excluded and require separate coverage or modification (rider) to obtain protection.

Always check your policy terms or ask your agent if having coverage for a specific peril is important to you. There may be ways to add the coverage if it is not included in the standard home insurance policy.

Here are common perils that are usually excluded:

• Flood: Standard home insurance policies do not cover flood damage in high-risk areas, like Florida. Homeowners in these areas need to purchase separate flood insurance through the National Flood Insurance Program (NFIP) or a private provider. Flood coverage is recommended for all homeowners, regardless of flood zone.
• Earthquake: Coverage for earthquakes or earth movement must be added as an endorsement or purchased through a separate policy.
• Sewer or drain backup: Water backing up from sewers or drains is not included unless you add that specific coverage.
• Neglect or lack of maintenance: Damage caused by ignoring repairs or failing to maintain systems is not covered.
• Intentional loss: Any damage caused on purpose by the homeowner or a resident is excluded.
• Wear and tear: Insurance covers sudden, accidental damage, not aging or gradual breakdown.
• War or nuclear hazard: Policies exclude loss from war-related events or nuclear incidents.
• Mold: Many policies exclude mold or limit this coverage.
• Sinkhole: Full sinkhole loss coverage is usually excluded in the base policy, but can often be purchased as an optional endorsement for additional premium, subject to limitations.

Each policy includes its own list of exclusions. Reading your policy carefully helps you understand where gaps exist.

If you're in Florida or South Carolina and want coverage for excluded perils like flood, talk to your agent or review optional add-ons available through Slide Insurance.

Why Understanding Perils Matters When Choosing a Policy

Insurance policies are not one-size-fits-all. It is important to customize your policy so it includes the coverage that matters most to you. It is also critical to review your policy annually to know what your coverage includes or excludes should you have a claim.

Understanding which perils your policy covers helps you:

• Avoid surprises after a loss.
• Ask key questions before buying your policy.
• Understand what additional coverage you may need to invest in to be fully protected.

You’ll avoid costly gaps when you select coverage based on the actual risks your home faces. This is especially important in coastal areas, such as Florida and South Carolina, where weather events are more frequent and severe.

Final Thoughts on Perils and Home Insurance

Perils define how your homeowners' insurance works — and covered perils trigger the claims process. Excluded perils require additional protection or incur costs. Knowing the perils that you have covered or excluded will help you read your policy with clarity and spot gaps that you may wish to fill in.

If you own a home in Florida or South Carolina, your policy may include special considerations, such as hurricane deductibles or wind exclusions. Get started with a quote from Slide Insurance. We make it easy to review options, adjust coverage to fit your risks, and get the help you need, when you need it.