What Is a Covered Peril? By Mila Araujo, Updated on June 15, 2022, and Reviewed by Anthony Battle in This Article
How Can It Function?
Types of Covered Perils: Named Peril vs. Open Peril (All-Risk) A covered peril is an event that can damage your home.
Your homeowners insurance policy will pay for the damage to your home if it is damaged by a covered peril.
Learn more about the risks covered by homeowners insurance and how to find out what your policy covers.
A peril in homeowners insurance is anything that could harm or cost you your home.
A canvassed risk is remembered for your strategy. Your insurance company will pay you a certain amount to cover the loss or damage to your home if that kind of peril occurs.
If a peril is excluded, you would not have coverage for the damage it could cause. For instance, if tornadoes were included in your policy as a covered peril, your homeowner’s insurance would cover the costs of fixing the damage to your home.
However, the repairs would not be covered if the policy did not cover this risk, which is typically referred to in policies as a “windstorm.”
