One term that often confuses policyholders is "peril." Simply put, a peril is an event or circumstance that can cause damage to your property.

What are Covered Perils?

Your insurance policy, whether it's homeowners, renters, or commercial property insurance, outlines a specific list of perils for which you're covered. If a covered peril damages your property, your insurer will typically reimburse you for repairs or replacements minus your deductible (the amount you pay out of pocket before insurance kicks in).

It's important to remember that not all events are considered perils. For instance, wear and tear wouldn't be covered. Let's explore some of the most common covered perils:

• Fire and Lightning: Damage caused by accidental fire or lightning strikes is a standard coverage in most policies.
• Windstorm and Hail: Wind damage from storms, including tornadoes, is usually covered. Hail damage is also typically included.
• Explosion: This covers damage caused by an explosion, such as a gas leak.
• Vandalism: If someone vandalizes your property, your insurance may cover the repairs.
• Theft: Coverage applies if your belongings are stolen from your insured property.
• Falling Objects: Damage caused by falling objects like trees or debris is often covered.
• Weight of Ice, Snow, or Sleet: The immense weight of accumulated ice, snow, or sleet causing structural damage is typically covered.

Understanding Policy Types: Named Peril vs. Open Peril

There are two main types of insurance policies when it comes to perils coverage:

• Named Peril Policies: These policies explicitly list the covered perils in the policy document. This means you're only covered for events mentioned in the list. Named peril policies are generally less expensive but offer less comprehensive coverage.
• Open Peril Policies (Also known as All-Risk Policies): These policies cover all perils except for those specifically excluded. Open peril policies offer broader protection but come at a higher premium.

Commonly Excluded Perils

While many perils are covered, some events are typically excluded from standard policies. Here are some common exclusions:

• Floods: Flood damage usually requires a separate flood insurance policy.
• Earthquakes: Earthquake coverage may require an additional endorsement on your policy.
• Normal Wear and Tear: Gradual deterioration of your property due to age or use is not covered.
• Termite Damage: Termite and insect damage is often excluded.
• War and Civil Commotion: Damage caused by war or civil unrest may not be covered.

Sudden and Accidental Loss vs. Home Maintenance

While homeowners insurance protects against various misfortunes, it's crucial to know the distinction between sudden and accidental losses covered by your policy and ongoing maintenance issues that are your responsibility as a homeowner.

Sudden and Accidental Loss

Your homeowner's insurance policy protects you from sudden and accidental losses caused by covered perils. Here's how this plays out in some common scenarios:

• Burst Pipe: Imagine a cold snap causes a pipe to burst, flooding your basement. This is a sudden and accidental event, and your insurance would likely cover the repairs to your home and the removal of water damage (depending on policy limits).
• Tree Damage: A strong windstorm topples a tree onto your roof, causing significant damage. This is another example of a sudden and accidental event covered by most homeowners insurance policies. The cost of repairing your roof and potentially even removing the fallen tree would be covered (minus your deductible).
• Fire Damage: An accidental kitchen fire spreads and damages your home. Thankfully, homeowners insurance typically covers fire damage, helping you rebuild or repair your property.

The key takeaway is that the event causing the damage must be sudden and accidental. This means it happened unexpectedly and wasn't caused by neglect or lack of maintenance. For instance, if a pipe bursts because it wasn't properly insulated during a cold winter, your insurance might not cover the repairs. This highlights the importance of proactive home maintenance to prevent such situations.

Home Maintenance: Your Responsibility as a Homeowner

Owning a home comes with the responsibility of maintaining it. Here are some common home maintenance issues that are generally not covered by homeowners insurance:

• Gradual Deterioration: Over time, your roof will wear down due to exposure to the elements. Replacing a worn-out roof due to normal wear and tear wouldn't be covered by insurance. However, if a storm damages your roof and accelerates its deterioration, the storm damage portion might be covered.
• Leaky Faucets: A slowly dripping faucet can waste water and eventually lead to more significant problems. However, the cost of repairing a leaky faucet wouldn't be covered by insurance.
• Clogged Drains: Clogged drains are a common household issue, often caused by hair, soap scum, or other debris buildup. The cost of unclogging a drain wouldn't be covered by insurance.

The Importance of Proactive Maintenance

By taking proactive steps to maintain your home, you can prevent many problems that wouldn't be covered by insurance. Here are some maintenance tips for homeowners:

• Schedule regular inspections: Have your roof, plumbing, and electrical systems inspected periodically by qualified professionals. This can help identify potential problems before they become major issues.
• Perform routine maintenance: Clean your gutters regularly, maintain your HVAC system, and address minor issues promptly to prevent them from escalating.
• Winterize your home: If you live in a cold climate, take steps to winterize your home by insulating exposed pipes and ensuring proper ventilation in crawl spaces to prevent frozen pipes.

By following these tips, you can minimize the risk of sudden and accidental losses caused by neglect and avoid situations where your insurance won't cover the repairs.

Understanding Your Specific Coverage

• Review your policy documents thoroughly to understand the perils covered and the exclusions that apply.
• Reach out to your insurance agent if you have any questions about your specific coverage or scenarios where you're unsure about coverage.

By understanding the difference between covered perils and home maintenance responsibilities, you can ensure your insurance policy offers the protection you need and avoid unexpected financial burdens in the event of a mishap.