February 19, 2019

Understanding Perils in Your Insurance Policy

So, what are “perils” according to my insurance policy?

“Perils” as your insurance policy describes are specific losses or hazardous events that could potentially damage your property. Some perils you may see in your policy documents include:

…and more. However, your insurance policy may provide “named perils” coverage versus “all perils” coverage. In a named perils policy, if any of the listed perils in your policy were to suddenly and unexpectedly cause damage to your personal property, you would have coverage and your property could be restored. However, in an “all perils” policy, you have coverage for all perils except those that are specifically excluded.

To have a better understanding of your coverage, review your policy documents or contact your insurance agent.

Well, if either policy doesn’t include everything, what do I do?

Your insurance policy will not cover every potential loss. In fact, you’ll find you have specific exclusions from your coverage. For example, standard homeowners’ policies exclude flood and earthquake coverage but that doesn’t mean you are out of luck! National programs and private insurers provide separate flood policies.

Another exclusion you may notice would be mechanical or equipment breakdown. With the amount of smart-technology we have installed in our homes today, equipment breakdown or failure due to a power surge can be financially devastating. A standard homeowner’s policy will not cover this type of loss, but an Equipment Breakdown rider or endorsement will.

What if a peril occurs outside of my home?

When you have a homeowner’s policy, your belongings are protected on and off your property. If you experience theft of your belongings while you’re on vacation, your homeowner’s policy may provide coverage for those belongings. Remember — you may need separate coverage for high-value objects, like jewelry, musical instruments or art.

Insurance can sound complicated, but it doesn’t have to be.

That’s why independent agents are your trusted advisers and advocates for your coverage needs. Contact your agent to review your policy documents and coverage limits.

The description herein is a summary only, and does not include all terms, conditions and exclusions of the coverage described. Please refer to the actual policy for complete details of coverage and exclusions. Not all insurance coverages or products are available in all states and issuance of coverage is subject to underwriting.