YOU ASK:
What is the definition of Peril?
WE ANSWER:
Peril, in insurance terms, refers to a defined risk or cause of loss. This risk is insured through an insurance policy. This term is usually used in the Property and Casualty line of insurance.
Usually, the risks that an insurance policy protects against are listed in the insurance policy. The insurance company will only pay for claims that were caused by the covered risks. An all-risk policy, on the other hand, will pay for claims for all causes of loss unless the policy specifies that the risk is not covered.
Examples of the risks are windstorm, theft, death and flood.
It is recommended that you review your policies to see what perils are covered.
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More insurance terms around peril:
- Period Certain
- Personal Articles Floater
- Personal Injury Protection Coverage (PIP)
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