Before you shop for insurance, you need to know a few terms to understand your policy and how it works. One of the most important is “home insurance peril.”
What is a home insurance peril?
A home insurance peril is a damaging event for which a carrier has agreed to reimburse you should you file a claim. These perils are clearly listed in your home insurance policy’s declarations page and often include the following.
- Fire or lightning
- Civil commotion
- Damage caused by aircraft
- Damage caused by vehicles
- Windstorm and hail
- Volcanic eruption
- Falling objects
- Weight of snow, ice, or sleet
- Accidental water discharge
- Power surges
- Sudden appliance tears or cracks
Do all policies cover perils the same way?
No. In fact, you can either purchase “named peril” or “open peril” coverage.
Named peril insurance only covers damage caused by a specific list of perils. If you have purchased this type, it’s your responsibility to prove a covered peril caused damage to your home.
On the other hand, open peril policies cover everything BUT a specific list of excluded perils. And if your home is ever damaged, the insurance carrier would have to pay or prove the loss wasn’t covered.
Obviously, open peril insurance is more expensive than named peril because it covers more incidents.
What perils aren’t included in standard home insurance policies?
As we’ve said, home insurance policies only cover some situations. In fact, they often exclude the following.
- Normal wear and tear
- Damage during a move
- Intentional damage
However, you can add riders to your insurance policy that cover these events. For example, if you’re worried about floods, you can add a flooding rider to your home insurance. Therefore, you’ll get the coverage you need without purchasing a new policy.
If you have questions about a home insurance peril or other parts of your policy, call your MTG agent. We’re standing by to help.