While you may be familiar with the obvious need for homeowners’ insurance, the finer details and definitions of your coverage may be less clear.Take insurance peril, for example.Even long-time policyholders may be unfamiliar with the term or confused with other concepts.

So, what are perils, how are they related to risks or hazards, and why are they important to understand? What Does Peril Mean? First, let’s establish some definitions of commonly used terms: peril, risk, and hazard.In insurance terms, a peril refers to an event that causes damage to your property.Risks, by contrast, are simply the likelihood of perils occurring, while hazards are conditions that elevate those risks.

Flammable materials stored near your home, for example, constitute a hazard that increases the risk of a fire.The fire itself is the peril.Your policy provides protection for those perils that are often known as “covered” perils, while those it does not protect against are called “uncovered” or “excluded” perils.

Common Covered Perils Perils lists will vary by the insurance provider.However, some of the most commonly covered perils are: Uncovered Perils Similarly, there are perils that are often not covered under a standard policy.These may include: While standard homeowners policies typically do not address these uncovered perils—also known as excluded perils—additional policy types may be available to address them.

Named Versus Comprehensive (or Open) Perils Finally, it’s useful to understand named perils coverage versus coverage on a comprehensive peril basis.In the case of named perils coverage, for coverage to apply, the loss must have been caused by one of the named perils listed on the policy itself.By contrast, with comprehensive or open perils coverage, if the loss is not due to an exclusion on the policy, coverage is typically provided.

Know You’re Covered By being aware of the covered perils in the policy, exclusions, and types of optional coverage available, you can make informed decisions about your insurance needs.It’s a good practice to periodically review your policy to ensure it continues to meet your requirements as your circumstances change.Of course, the best way to review your coverage is to contact your insurance agent, who can address your concerns and help you understand your coverage in detail.

Talk to a local agent today, and we’ll help you understand how to keep yourself covered.ERIE insurance products and services are provided by one or more of the following insurers: Erie Insurance Exchange, Erie Insurance Company, Erie Insurance Property & Casualty Company, Flagship City Insurance Company and Erie Family Life Insurance Company (home offices: Erie, Pennsylvania) or Erie Insurance Company of New York (home office: Rochester, New York).  The companies within the Erie Insurance Group are not licensed to operate in all states.Refer to the company licensure and states of operation information.

The insurance products and rates, if applicable, described in this blog are in effect as of January 2024 and may be changed at any time.  Insurance products are subject to terms, conditions and exclusions not described in this blog.The policy contains the specific details of the coverages, terms, conditions and exclusions.  The insurance products and services described in this blog are not offered in all states.  ERIE life insurance and annuity products are not available in New York.  ERIE Medicare supplement products are not available in the District of Columbia or New York.  ERIE long term care products are not available in the District of Columbia and New York.  Eligibility will be determined at the time of application based upon applicable underwriting guidelines and rules in effect at that time.Your ERIE agent can offer you practical guidance and answer questions you may have before you buy.

A better insurance experience starts with ERIE.Haven’t heard of us? Erie Insurance started with humble beginnings in 1925 with a mission to emphasize customer service above all else.Though we’ve grown to reach the Fortune 500 list, we still haven’t lost the human touch.

Contact Drake Insurance today to experience the ERIE difference for yourself.