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What is an Insurance Peril?

By My Insurance Broker  •  My Insurance Broker
Jun 21st, 2016 at 12:56 pm  •  Richmond Hill, ON

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The meaning of Peril:

Peril is a situation which may cause a loss to happen. Insurance is provided in the event of a loss from a specified peril. A homeowner’s policy, for example, insures against perils like windstorms, fire and theft.

Commonly Insured Perils Among Insurers
Explosion Vandalism or malicious acts
Falling object Water escape, rupture, and freezing
Impact by aircraft or land vehicle Windstorm or hail
Lightning damaging electrical devices or appliances Riot
Smoke

Perils may be listed, included, or excluded depending on the insurance coverage, provider, and geographic location. For example, negligence, which refers to the act of doing something a reasonable person would not do or the act of omitting something a reasonable person would do, is the peril insured in liability insurance. Another example are commonly used terms such as All Risks and Damage However Caused, which sound like absolute coverage, but are in fact not, excluded in certain instances such as wear and tear and in extreme cases war or civil unrest. In this case the extent of insurance coverage is determined by the exclusions. It is always important to understand the limits of coverage, and perils available under your policy. Contacting your insurance professional or broker can help lend clarity to the types of incidences or perils your policy will protect you against.

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Compare The Best Auto Insurance Rates From Canada's Top Insurance Companies.
Average savings $500. Coverage available from $1,000,000 to 2,000,000.

References