A peril is a specific cause of loss or damage in insurance — such as fire, windstorm, hail, lightning, theft, or vandalism. Policies define coverage in terms of perils: a named-peril policy covers only the causes of loss it lists, while an open-peril (special form) policy covers all causes of loss except those it specifically excludes.
How it works
When a claim is filed, the first question an adjuster answers is "what peril caused this loss?" — because the policy's response depends entirely on it. The classic named-peril list on homeowners forms includes 16 perils: fire or lightning, windstorm or hail, explosion, riot, aircraft, vehicles, smoke, vandalism, theft, falling objects, weight of ice and snow, accidental water discharge, and several others. Open-peril coverage skips the list and instead asks only whether an exclusion applies.
Example (illustrative numbers): A tree limb falls and punches a hole in a roof during a storm, causing $9,000 in damage. The peril is "falling objects" (or windstorm, depending on the facts) — both named perils — so the loss is covered under either a named-peril or open-peril policy, minus the deductible. If instead the roof simply sagged from years of deterioration, the cause is wear and tear: not a named peril, and excluded under open-peril forms too, so no coverage either way. Numbers are illustrative only.
A related concept worth distinguishing: a hazard is something that increases the chance of a peril occurring — a woodstove is a hazard; the fire it might cause is the peril.
Why it matters for your policy
Perils are the vocabulary your entire policy is written in, and knowing them changes how you shop and how you file claims:
- Coverage structure: Your dwelling is typically covered open-peril and your belongings named-peril on a standard HO-3 — an asymmetry that surprises people at claim time. See named peril vs. open peril.
- Cause matters more than damage: The same wet basement can be a covered loss (burst pipe), an endorsement matter (sewer backup), or an excluded flood (surface water). Documenting the cause quickly and accurately protects your claim.
- Deductibles can vary by peril: Many policies apply separate, higher deductibles to wind and hail than to other perils, especially in storm-prone states.
Peril definitions and lists vary somewhat by carrier and state, so the policy form language is the final word.
Have questions about which perils your policy actually covers? Better Choice Insurance Group is an independent agency based in St. Charles, Illinois, licensed in 14 states. We’ll explain your options in plain English and compare coverage across our carriers — free, no pressure.
Related terms
- Named Peril vs. Open Peril — How the two peril structures change what is covered and who must prove it.
- Exclusion — The perils and situations a policy specifically carves out.
- HO-3 Policy — The common form that mixes open-peril and named-peril coverage.
- Deductible — Your out-of-pocket share — which can differ by peril, as with wind/hail.
- Comprehensive Coverage — The auto coverage for non-collision perils like hail, theft, and animal strikes.
Frequently Asked Questions
What are the 16 named perils?
The classic list: fire or lightning; windstorm or hail; explosion; riot or civil commotion; aircraft; vehicles; smoke; vandalism or malicious mischief; theft; falling objects; weight of ice, snow, or sleet; accidental discharge or overflow of water or steam; sudden and accidental tearing apart, cracking, burning, or bulging of certain systems; freezing; sudden and accidental damage from artificially generated electrical current; and volcanic eruption. Exact wording varies by form.
Is flood a covered peril?
Not on standard home policies - flood is a standard exclusion on both named-peril and open-peril forms, covered instead by separate flood insurance through the NFIP or private flood carriers. Water perils that originate inside the home, like a burst pipe, are treated differently and are generally covered.
What's the difference between a peril and a hazard?
A peril is the cause of loss itself - fire, theft, wind. A hazard is a condition that makes a peril more likely or more severe - a frayed extension cord, an unfenced pool, icy front steps. Insurers price policies partly on hazards, but claims are paid or denied based on perils.
Last reviewed: August 2026 · Reviewed by Evan Larson, Licensed Insurance Agent