Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

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Reviewed by Leslie Kasperowicz
Former Farmers Insurance CSR

UPDATED: Oct 30, 2020

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In insurance terms “peril” is anything which can incur a loss for the insurance company based on the coverage terms of any individual insurance policy. In most instances peril covered by a policy that is issued by an American insurance company will be specifically named on your insurance contract, this is known as a named peril.peril

The reason for listing a peril on your policy is so that the insurance company can be clear in legal terms for what they will be held responsible when it comes to making payments or releasing benefits under your contractual agreement.

What are the perils associated with my insurance policy?

Every single insurance policy is different and as such there are many possible combinations of peril that may be covered by your policy, and as such it would be difficult if not impossible to list them all here. You first step should be to read and understand your insurance contact, if you don’t feel you understand which instances of peril are included you could then consult your insurance broker or insurance agent for them to explain this to you.

Some usual perils that will be covered by your auto insurance policy:

Most insurance companies will offer auto insurance policies which cater for some or all of the following potential perils; however this is neither a definitive list nor a representation of your particular coverage:

  • Flood and fire damage – this is not always a standard part of the insurance coverage in auto insurance policies and you may want to check to see if this is included in your policy
  • Collision damage – in most instances this will be a standard coverage item for 3rd party cars but may not apply to your own vehicle
  • Bodily Injury – like collision damage this may only apply to 3rd parties and not always the policy holder
  • Theft and Loss – this is most commonly found in comprehensive insurance coverage and not on more basic insurance policies
  • Acts of God or “Force Majeure” may or may not be included in your insurance policy but if they are each specific peril for which coverage is provided should be listed this may include acts of war or terrorist activities, hurricanes, tornadoes, etc.

If you discover that your insurance lacks coverage for a specific peril – you should contact your agent or broker to arrange additional coverage.