perils insurance definition
A peril, as referred to in an insurance policy, is a cause of loss, such as fire or theft. Coverage can be provided on an âall perilsâ basis, or a ânamed perilsâ basis. Named Perils policies list exactly what is covered by the policy, while Open Perils (or All Perils) policies will list what is excluded from coverage. Named Perils policies are generally more restrictive. A dwelling policy usually provides coverage for both the dwelling and contents on a named perils basis, while a homeowners policy usually provides coverage for the dwelling on an all perils basis, and for the contents on a named perils basis.