Covered Peril

Core Takeaways

• A covered peril is a specific event or hazard that an insurance policy agrees to protect against.
• Standard policies don’t cover all risks—only the perils listed in your policy.
• Common covered perils include fire, wind, hail, theft, and vandalism.
• Excluded perils like flood and earthquake require separate policies or endorsements.

What is a Covered Peril?

In plain English: Your insurance policy is like a menu—only the items (perils) listed on the menu are covered. If something happens that’s not on the menu, you pay for it yourself.

Common Covered Perils

• Fire & Lightning — Damage from fire or lightning strikes
• Windstorm & Hail — Damage from hurricanes, tornadoes, and hailstorms
• Theft — Stolen property and damage from break-ins
• Vandalism — Malicious damage to property
• Explosion — Damage from gas or other explosions
• Smoke Damage — Damage from smoke and soot
• Falling Objects — Damage from trees, branches, or other objects
• Weight of Ice/Snow — Roof collapse from heavy snow or ice dams

Named Perils vs. Open Perils

There are two types of policies when it comes to perils:

• Named Perils: Only covers the specific perils listed in the policy
• Open Perils (All-Risk): Covers all perils except those specifically excluded

Policy Type	What’s Covered	What’s Not Covered	Best For
Named Perils	Only listed perils	Everything else	Budget-conscious buyers
Open Perils	Everything except exclusions	Only listed exclusions	Comprehensive protection

Common Exclusions (Not Covered Perils)

Even open-peril policies exclude certain events. Common exclusions include:

• Flood: Requires separate flood insurance
• Earthquake: Requires separate earthquake insurance
• War/Nuclear Hazard: Not covered by standard policies
• Intentional Damage: Damage you cause on purpose
• Gradual Damage: Mold, wear and tear, neglect

Important: I’ve spent time reviewing our glossary and calculators, and they do a good job of highlighting these coverage gaps. If you live in a flood zone or earthquake-prone area, our flood and earthquake insurance calculators can help you figure out what additional coverage you might need.

How to Verify Your Covered Perils

• Read your policy declarations page: This lists your coverage types
• Check the “Perils Insured Against” section: This lists covered perils
• Review exclusions: Know what’s NOT covered
• Talk to your agent: They can explain your coverage in plain English

Authoritative Sources

For more information on covered perils, visit these trusted resources:

• Insurance Information Institute (III)
• National Association of Insurance Commissioners (NAIC)
• FEMA - Flood Insurance

Frequently Asked Questions

Is flood damage covered under standard homeowners insurance?

No, flood damage is typically excluded. You need a separate flood insurance policy, usually through the National Flood Insurance Program (NFIP) or a private insurer.

Is earthquake damage covered?

No, earthquake damage is generally excluded from standard homeowners policies. You need to add earthquake coverage as an endorsement or purchase a separate policy.

What’s the difference between named perils and open perils?

Named perils policies only cover the specific perils listed, while open perils policies cover everything except the listed exclusions. Open perils provides broader coverage.

Can I add coverage for excluded perils?

Yes, many excluded perils can be covered through endorsements or separate policies. For example, you can add flood or earthquake coverage.