FRIDAY, JANUARY 29, 2021
What is a Covered Peril for Home Insurance?
Under insurance, a peril refers to a danger or risk that could cause damage to your home or lead to the need to filing a home insurance claim. A covered peril is a danger that is covered by your home insurance policy.
Most home insurance policies cover perils such as:
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Wind
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Hail
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Lightning
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Smoke
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Explosions
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Falling objects
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Theft
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Vandalism
For example, if a fire breaks out in your home and causes severe damage, repairs may be covered under your home insurance policy when you file a claim. This depends on your specific policy and how much coverage you have, so be sure to clarify with your insurance agent about what your policy covers and how much home insurance your home needs.
These apply to both your dwelling coverage and personal belongings coverage under home insurance. Dwelling coverage provides compensation for damages to the physical home and its attached structures while personal belongings coverage provides compensation for your personal items such as clothes, furniture, decorations, electronics and more.
Be sure to ask your agent about hoe much dwelling and personal belongings coverage you need.
Listed Perils vs. All Risk Perils
There are two types of home insurance policies when it comes to perils: listed perils and all risk perils.
Under a listed perils policy, only the dangers explicitly stated on your policy (such as listed about) will be covered. Anything not specified on the policy will generally be excluded.
An all risk peril policy, on the other hand, does the opposite. Instead of listing everything that is covered, an all risk peril home insurance policy will have a list of exclusions. Everything that is not listed as an exclusion should be covered under this type of policy.
What are Excluded Perils?
Every home insurance policy is different, but there are common exclusions that you may face when shopping for home insurance. Common perils excluded from home insurance include:
Depending on your insurer, you may purchase additional policy floaters to cover exclusions and restrictions. Many home insurance policies have restrictions on insuring expensive items such as jewelry, furs and art, for example. If you have expensive items you wish to insure, you can purchase insurance endorsements and floaters to cover the gaps of your basic home insurance coverage.
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