Peril

A cause of loss — fire, theft, wind, hail, that sort of thing.

A peril is simply a cause of loss — fire, theft, wind, hail, lightning, and so on. Policies are built around which perils they’ll respond to.

There are two broad approaches. A “named perils” policy covers only the causes it specifically lists, so if it’s not named, it’s not covered. An “open perils” (or all-risk) policy flips that: it covers every cause except the ones it excludes, which is generally broader and better.

Knowing which type you have tells you where you stand — with named perils, the burden is on you to show the cause was covered; with open perils, it’s on the insurer to show it was excluded.

This is a friendly general explanation, not legal or policy language. Exact coverage depends on your policy, carrier, and state. 🤝

Written and reviewed by the We Insure Things team — licensed independent insurance agents. Last reviewed July 23, 2026. Questions? Ask a licensed agent.