What is a basic peril?

Editorial team Published on

Basic perils are specific events or causes of property damage that are explicitly named and covered under a basic insurance policy.

If an event is not listed on the policy, the insurance company will not pay for the damage. According to standard industry definitions tracked by IRMI, this limited type of protection is the most budget-friendly option for property owners.

Common Basic Perils Covered

A standard basic form typically covers these specific causes of loss:

  • Fire and lightning: Damage from accidental fires and lightning strikes.
  • Windstorm and hail: Destruction caused by severe winds, tornadoes, or hailstorms.
  • Explosion: Sudden combustion inside equipment like furnaces or boilers.
  • Smoke: Sudden and accidental smoke damage, excluding regular fireplace smoke.
  • Aircraft and vehicles: Physical damage caused if a vehicle or plane crashes into the property.
  • Riot or civil commotion: Property harm from social unrest or labor strikes.
  • Vandalism: Intentional damage or destruction of property by others.
  • Sinkhole collapse: Sudden sinking of land into subterranean voids.
  • Volcanic action: Damage from volcanic eruptions, excluding ash clean-up unless specified.
  • Sprinkler leakage: Accidental discharge from fire protection sprinkler systems.

What is Excluded

Basic policies leave out many common risks. They do not cover:

  • Water damage from burst or frozen pipes
  • Theft or burglary
  • Falling objects
  • Weight of ice, snow, or sleet
  • Natural disasters like floods and earthquakes

What are the three main types of perils?

In insurance, perils are generally broken down into three main categories based on their origin: natural perils, human-made perils, and accidental perils.

Three Main Types of Perils

  • Natural Perils: Events caused by natural forces and weather patterns. Examples include earthquakes, floods, hurricanes, wildfires, lightning, and hail.
  • Human-Made Perils: Incidents or intentional acts caused by people. Examples include theft, vandalism, riots, and civil commotion.
  • Accidental Perils: Sudden, unforeseen, and unintentional mishaps. Examples include accidental fires, explosions, or unintentional plumbing leaks.

(Note: In policy coverage types, insurance companies also categorize how they handle these events using Named Perils and Open Perils models, where "named" lists exact covered events and "open" covers everything except what is explicitly excluded.)

What perils are covered on a basic form?

A basic form property insurance policy covers a specific, limited list of named perils.

Covered Named Perils

A standard basic form typically covers these specific causes of loss:

  • Fire or lightning
  • Windstorm or hail
  • Explosion
  • Smoke (when sudden and accidental)
  • Aircraft or vehicle damage (from physical impact)
  • Riot or civil commotion
  • Vandalism and malicious mischief
  • Sprinkler leakage (for commercial properties)
  • Sinkhole collapse
  • Volcanic action or eruption
  • Theft (included in some basic homeowners forms like HO-1, but often excluded in basic commercial forms)

Common Exclusions

Because it is a named-peril policy, any event not explicitly listed on the basic form is not covered. Common exclusions include:

  • Falling objects
  • Weight of snow, ice, or sleet
  • Water damage (such as from frozen or burst pipes)
  • Building collapse

What is an example of peril?

A peril is an event or specific cause of loss that damages or destroys property, such as a fire or a lightning strike.

Common Examples of Perils

  • Fire or lightning: A lightning strike that causes a house fire.
  • Windstorm and hail: High winds or severe hail that break windows or damage a roof.
  • Theft and vandalism: Stolen belongings or willful property damage.
  • Falling objects: A tree branch that falls onto a house during a storm.
  • Weight of ice and snow: Heavy accumulation that causes a roof to collapse.

General Examples in Daily Life

  • Physical danger: Sailors facing peril during a violent sea storm.
  • Risky action: Entering a dark cave without a map at your own peril.

You can learn more about how Farmers Insurance defines human-made and natural risks or read about Progressive to see how a peril differs from a hazard.

What is a standard peril?

In insurance, a standard peril is a specific event or cause of property loss—such as a fire, windstorm, or theft—that is explicitly covered by an insurance policy.

Common Standard Perils

A standard homeowners insurance policy typically protects against a foundational list of named events:

  • Fire and lightning
  • Windstorm and hail
  • Explosions
  • Riot or civil commotion
  • Damage from vehicles or aircraft
  • Smoke damage
  • Vandalism and malicious mischief
  • Theft
  • Falling objects
  • Weight of snow, ice, or sleet

How Policies Use Perils

Insurance policies generally handle these risks in two distinct ways:

  • Named Perils: The policy lists exact events that are covered. If a cause of damage is not on the list, it is not covered.
  • Open Perils (All-Risk): The policy covers all causes of loss or damage unless the event is specifically excluded (such as floods, earthquakes, or normal wear and tear).

Peril-Insurance Exam Definition

9 related questions found

What are the 16 perils?

The 16 perils are the specific, named events—such as fire, theft, and windstorms—traditionally covered under broad-form and standard homeowners or renters insurance policies.

The 16 Named Perils

Insurance policies commonly group these 16 events into standard coverage:

  • Fire or lightning
  • Windstorm or hail
  • Explosion
  • Riot or civil commotion
  • Damage by aircraft
  • Damage by vehicles
  • Smoke
  • Vandalism or malicious mischief
  • Theft
  • Falling objects
  • Weight of ice, snow, or sleet
  • Accidental discharge or overflow of water or steam (from plumbing or appliances)
  • Sudden and accidental tearing apart, cracking, burning, or bulging (of heating, AC, or hot water systems)
  • Freezing of plumbing, heating, or AC systems
  • Sudden and accidental damage from artificially generated electrical current (like power surges)
  • Volcanic eruption

Common Exclusions

Standard policies do not cover everything. Typical exclusions include:

  • Floods
  • Earthquakes
  • Normal wear and tear
  • Pest or insect damage
  • Neglect or lack of maintenance

Learn more about policy structures via Policygenius or check details on Hippo Insurance.

What are the top 5 worst homeowners insurance companies?

Based on recent industry surveys like J.D. Power's property and satisfaction studies, the lowest-ranking homeowners insurance companies for customer satisfaction and claims include Universal Direct, Tower Hill Insurance, National General, Homesite, and Foremost.

Lowest-Ranking Home Insurers

  • Universal Direct: Ranks at the very bottom of major customer satisfaction and claims surveys due to slow response times and service issues.
  • Tower Hill Insurance: Frequently scores near the bottom for overall customer experience and policyholder satisfaction.
  • National General: Scores poorly on consumer satisfaction metrics regarding communication and payout handling.
  • Homesite: Routinely lands at the bottom of J.D. Power claims satisfaction rankings for property coverage.
  • Foremost: Receives below-average customer satisfaction scores for handling claims and policy value.

What are basic perils?

Basic perils are specific events or causes of property damage that are explicitly named and covered under a basic insurance policy.

If an event is not listed on the policy, the insurance company will not pay for the damage. According to standard industry definitions tracked by IRMI, this limited type of protection is the most budget-friendly option for property owners.

Common Basic Perils Covered

A standard basic form typically covers these specific causes of loss:

  • Fire and lightning: Damage from accidental fires and lightning strikes.
  • Windstorm and hail: Destruction caused by severe winds, tornadoes, or hailstorms.
  • Explosion: Sudden combustion inside equipment like furnaces or boilers.
  • Smoke: Sudden and accidental smoke damage, excluding regular fireplace smoke.
  • Aircraft and vehicles: Physical damage caused if a vehicle or plane crashes into the property.
  • Riot or civil commotion: Property harm from social unrest or labor strikes.
  • Vandalism: Intentional damage or destruction of property by others.
  • Sinkhole collapse: Sudden sinking of land into subterranean voids.
  • Volcanic action: Damage from volcanic eruptions, excluding ash clean-up unless specified.
  • Sprinkler leakage: Accidental discharge from fire protection sprinkler systems.

What is Excluded

Basic policies leave out many common risks. They do not cover:

  • Water damage from burst or frozen pipes
  • Theft or burglary
  • Falling objects
  • Weight of ice, snow, or sleet
  • Natural disasters like floods and earthquakes

Which peril is not covered by homeowners insurance?

Standard homeowners insurance does not cover natural floods, earthquakes, and general wear and tear.

Common Exclusions

  • Floods and surface water: Damage from rising natural waters, heavy rain pooling, or storm surges requires a separate flood policy.
  • Earth movement: Earthquakes, landslides, sinkholes, and mudflows are excluded from standard policies.
  • Wear and tear and neglect: Gradual deterioration, rust, corrosion, and damage from failing to perform routine home maintenance are not covered.
  • Pest and insect infestations: Damage caused by termites, rodents, birds, or other pests is viewed as a maintenance failure.
  • Mold and rot: Mold removal is typically excluded unless it directly results from a sudden, covered water event like a burst pipe.
  • Sewer and drain backups: Water backing up from sewers or overflowing sump pumps generally requires an extra endorsement.
  • War and nuclear hazards: Acts of war, military actions, and nuclear incidents are universally excluded.
  • Intentional damage: Deliberate destruction or criminal acts caused by the homeowner are never covered.

You can check out Policygenius for a full breakdown of standard policy limits.

What does basic coverage include?

Basic auto insurance coverage typically includes state-mandated liability protection to pay for injuries and property damage you cause to others in an accident.

Core Liability Components

  • Bodily Injury Liability: Pays for medical bills, legal fees, and lost wages of other people hurt in an accident you cause.
  • Property Damage Liability: Pays to repair or replace other people's vehicles or property damaged in a crash you are responsible for.

Frequently Required Additions

Depending on where you live, basic coverage may also include:

  • Personal Injury Protection (PIP) / Medical Payments: Covers medical treatment, rehabilitation, or funeral costs for you and your passengers regardless of fault.
  • Uninsured/Underinsured Motorist: Pays for your medical care or car repairs if an at-fault driver lacks adequate insurance.

Note: Basic coverage does not pay to repair your own car if you cause an accident; you need optional Collision and Comprehensive policies for that. You can review detailed breakdowns at the Insurance Information Institute.