---
title: "Peril in Insurance: What a Covered Cause of Loss Means | Riskado"
description: "A peril is the cause of a loss, such as fire, theft, hail or windstorm. Whether your policy covers or excludes that peril decides if your claim is paid."
url: "https://riskado.com/insurance-terms/peril/"
lang: "en"
published: "2026-05-21"
modified: "2026-10-01"
image: "https://riskado.com/og/default.jpg"
alternates:
  es: "https://riskado.com/es/terminos-de-seguros/peligro.md"
---

# Peril

Updated Oct 1, 2026

A peril is the event or cause of loss an insurance policy covers, such as fire, theft, hail, windstorm or premature death. The policy's covered-peril wording, exclusions, deductible, limit and endorsements decide whether the insurer pays for a loss and how much remains your responsibility.

Also called: perils, hazard

Every property [claim](https://riskado.com/insurance-terms/claim/) starts with one question: what caused the damage? That cause is the peril, and the [policy](https://riskado.com/insurance-terms/policy/) either covers it, excludes it, or says nothing about it, depending on how the [coverage](https://riskado.com/insurance-terms/coverage/) is written. Only once the peril is covered do the [deductible](https://riskado.com/insurance-terms/deductible/) and the limit come into play. So, the peril decides whether you're paid at all, and the deductible and limit decide how much.

## How the peril and the deductible work together on a claim

Take an illustrative fire that causes $10,000 of covered damage to a house [insured](https://riskado.com/insurance-terms/policyholder/) with a $250 all-peril deductible, an amount the [New York Department of Financial Services (opens in a new tab)](https://www.dfs.ny.gov/consumers/help_for_homeowners/insurance/basic_coverage) gives as an example of a standard all-peril deductible.

A $10,000 covered fire loss with a $250 all-peril deductible

Hover or tap a row to highlight it.

| Item | Amount |
| --- | --- |
| Covered fire damage | $10,000 |
| Deductible you pay | $250 |
| Insurer pays ($10,000 minus $250) | $9,750 |

Fire is a [covered peril](https://riskado.com/insurance-terms/named-perils/) here, so the deductible is the only reduction. If the same $10,000 of damage came from a peril the policy excludes, such as flood under a standard homeowners policy, that policy could pay $0 regardless of the size of the loss. Standard homeowners policies do not cover flood, according to [FEMA (opens in a new tab)](https://www.fema.gov/tl/print/pdf/node/351929). The $10,000 figure is an illustration.

## Named perils, open perils and peril-specific deductibles

Policies handle perils in two basic ways, and the deductible can change by peril as well.

- **Named perils.** The policy lists exactly what is covered, according to the [Connecticut Insurance Department's homeowner insurance guide (opens in a new tab)](https://portal.ct.gov/-/media/DEMHS/_docs/Plans-and-Publications/EHSP0071--InsuranceGuide.pdf). A loss from an unlisted cause generally doesn't qualify unless another provision applies.
- **Open perils, or all-risk.** The policy covers direct physical loss unless the cause is excluded.
- **HO-2 broad form.** Generally covers the basic perils plus a longer list of named additions, according to [New York DFS (opens in a new tab)](https://www.dfs.ny.gov/consumers/help_for_homeowners/homeowner_tenant_guide).
- **HO-3 special form.** Covers the dwelling for all risks of physical loss except listed exclusions, while [personal property](https://riskado.com/insurance-terms/personal-property-coverage/) is generally covered on a named-peril basis.
- **HO-5 comprehensive form.** Generally covers both the dwelling and personal possessions on an all-risk basis, subject to exclusions.
- **All-peril deductible.** Beyond the $250 example, higher options such as $500 and $1,000 may be available; a higher deductible raises your share of a covered loss and generally lowers the [premium](https://riskado.com/insurance-terms/premium/).
- **Wind, hail and hurricane deductibles.** These may be separate from the standard deductible. Florida requires insurers to offer hurricane deductible options of $500, 2%, 5% or 10% in specified circumstances, and a percentage deductible is figured from the insured dwelling limit, not the repair bill, according to the [Florida Department of Financial Services (opens in a new tab)](https://myfloridacfo.com/division/consumers/consumerprotections/floridashurricanedeductible).
- **Earthquake and flood.** Earthquake is not covered under standard homeowners, renters or condo policies and can be added separately or by [endorsement](https://riskado.com/insurance-terms/endorsement/), with deductibles commonly 10% to 25% of the structure's replacement value, according to [New York DFS (opens in a new tab)](https://www.dfs.ny.gov/consumers/help_for_homeowners/insurance/basic_coverage). National Flood Insurance Program residential policies can provide up to $250,000 of building coverage and $100,000 of contents coverage for one-to-four-family homes, according to [FEMA (opens in a new tab)](https://www.fema.gov/tl/print/pdf/node/351929).

## Where you see the word peril

The term shows up most in property and casualty insurance: homeowners, renters, condo, dwelling, flood, earthquake, commercial property and auto physical damage coverage.

On paper, a quote may describe coverage as named peril, open peril, all-risk or all-other-peril. The declarations page may list deductibles by peril, such as wind, hail, hurricane or all other perils. The insuring agreement names covered causes of loss, the exclusions remove perils such as flood, earthquake, wear and tear or earth movement, and endorsements add or change coverage for a peril. Renewal notices and claim letters use the word too.

## Connecticut's minimum perils and renewal notices

Connecticut sets a floor for named-peril coverage of personal property. Under the [Connecticut Insurance Department's homeowner forms checklist (opens in a new tab)](https://portal.ct.gov/cid/-/media/cid/1_protertycasualty/ho-formschecklist.pdf), Coverage C named perils must include at least fire or lightning, windstorm or hail, explosion, riot or civil commotion, aircraft, vehicles, smoke, vandalism, theft, falling objects, weight of ice, snow or sleet, accidental water discharge or overflow, sudden and accidental tearing apart, cracking, burning or bulging, freezing, sudden and accidental electrical damage and volcanic eruption. The state's standard fire policy provisions, including coverage for direct loss by fire and lightning, appear in [Conn. Gen. Stat. § 38a-307 (opens in a new tab)](https://www.cga.ct.gov/current/pub/chap_700.htm#sec_38a-307).

When coverage for a peril changes at renewal, notice rules apply. In New York, an insurer generally must give written notice of nonrenewal or conditional renewal, which can include eliminating coverage, 45 to 60 days before the policy period ends, with the specific reason stated, under [N.Y. Insurance Law § 3425 (opens in a new tab)](https://www.nysenate.gov/legislation/laws/ISC/3425). Connecticut auto and homeowners policies must include a statement letting you name a third party to receive cancellation or nonrenewal notices under [Conn. Gen. Stat. § 38a-323a (opens in a new tab)](https://www.cga.ct.gov/current/pub/chap_700.htm#sec_38a-323a).

## Questions to ask an agent or insurer

1.  Which causes of loss are covered for the dwelling, my belongings, my vehicle or my business property? The house and its contents may use different peril structures, especially on an HO-3.
2.  Is this coverage named peril or open peril, and which exclusions apply? Named-peril coverage requires the cause to be listed, while open-peril coverage is limited by its exclusions.
3.  What deductible applies to fire, wind, hail, hurricane, earthquake, flood and all other perils? A separate or percentage deductible can change what you pay before coverage begins.
4.  Are flood, earthquake, sewer backup, water seepage or earth movement excluded, separately insured or available by endorsement? Standard homeowners policies commonly exclude several high-loss causes.
5.  If coverage for a peril changes at renewal, where will the change appear and what notice will I receive? Connecticut and New York both have notice rules for nonrenewal and conditional renewal.

## Frequently asked questions

These answers cover the peril questions that come up most when reading a policy.

### Does homeowners insurance cover every peril?

No. Standard policies commonly exclude flood, earthquake, earth movement, wear and tear, maintenance-related damage and other causes, and the policy's exclusions list is the final word. Our [Connecticut flood insurance guide](https://riskado.com/connecticut-flood-insurance/) covers the separate policy for flood.

### Is a hazard the same as a peril?

No. The peril is the cause of the loss, like a fire, while a hazard is a condition that makes a loss more likely or worse, such as faulty wiring, an unsafe roof or an empty building. "Hazard insurance" is a common label for property coverage against specified causes of loss, not a promise that every peril is covered.

### Does California treat earthquake perils differently?

Yes. An insurer writing homeowners coverage in California must offer earthquake coverage for an additional premium, and homeowners and renters policies there must cover fire caused by or following an earthquake, according to the [California Department of Insurance (opens in a new tab)](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/03-res/res-ins-guide.cfm).

## Related terms