Peril
Definition
A specific cause of loss or damage covered by an insurance policy. Perils can be named (specifically listed) or open (all risks except those excluded).
Example
A homeowners policy covers named perils including fire, windstorm, hail, theft, and vandalism. If damage is caused by a covered peril, the claim is paid. If caused by an excluded peril like flood, it's not covered.
In Practice
Named peril policies list specific covered causes of loss. All-risk or open peril policies cover all causes except those specifically excluded, providing broader protection. Common perils include fire, wind, hail, theft, vandalism, and water damage (from certain sources). Policy language determines which perils are covered.