Understanding insurance perils

by Leona "Kay" Lehmer 01/29/2024

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Insurance perils are specific events covered in your policy. It's important to understand the limits of your homeowners insurance policy, especially any excluded perils. Here's a quick guide to the basics:

Perils commonly covered by insurance

A named perils plan covers 16 types of peril. However, it's not a universal list. For example, wind damage is not included in certain coastal zones and must be separately endorsed.

How peril, hazards & risk differ

The words risk and danger are similar to each other and are sometimes used interchangeably. However, insurance counts them as separate things. A risk is the possibility of a loss, while a peril or hazard is the actual cause of a loss.

Types of home insurance risks

Some common examples of insurance risks include:

  • Swimming pools.
  • Fireplaces.
  • Outdoor fire pits or ovens.
  • Pets.

The HO-2, HO-3 and HO-5 types of homeowners policies determine if your policies are defined against a set of specific risks based on location or home features.

Who is most affected by a home insurance peril?

A homeowner is affected by the perils insured in their policy, but so is the insurance company. Increased risk and covered perils both pose a higher cost to your insurer, which can increase the cost of your coverage.

Your mortgage lender could also be indirectly affected by home insurance risk because damage could negatively affect your home's value. To determine the specifics of your homeowners insurance, consult your provider for details.

About the Author
Author

Leona "Kay" Lehmer

I have been in the real estate industry for over 25 years!  I started working with some of the top builders in Tampa and then decided to pursue my general real estate license.  I love working with people and helping them find the home of their dreams.  The TampaBay Metro area(Tampa, St Petersburg, Clearwater...)is a great City and has grown unbelievably in the past 25+years.  I have extensive knowledge that I can share for those coming to the Florida area or those who want to move up or downsize or have to leave our great state.  I make it my goal to work for you to find the right home, whether it be upsizing or downsizing, I will find the best location for you! From the beaches to golf course to the city or country, I can find the perfect home for you!  When you call my phone, you get ME! You are not handed off, if I don't know the answer to a question, I will find out and get back to you!  I Work FOR YOU!!