Specified Peril

Example

“Tom's basic homeowner's policy listed fire, theft, and windstorm as specified perils, so when his basement flooded from a burst pipe, he wasn't covered because water damage wasn't among the named perils.”

Memory Tip

Remember 'Specified = Specifically Listed' - if it's not written down as a covered peril, you're not protected against it.

Why It Matters

Understanding specified perils is crucial because it determines exactly what your insurance will and won't cover, directly affecting your out-of-pocket expenses when disasters strike. Knowing your policy's specified perils helps you identify coverage gaps and decide whether to purchase additional protection for unlisted risks.

Common Misconception

Many policyholders assume that common sense dictates coverage, believing that if something seems like it should be covered, it will be. However, specified peril policies are strictly limited to the exact perils listed, regardless of how reasonable other coverage might seem.

In Practice

Consider two neighbors each suffering $10,000 in property damage. Jane has specified peril coverage listing fire, theft, vandalism, and windstorm. Mike has the same perils plus hail specifically listed. When a severe hailstorm damages both properties, Mike receives his full $10,000 claim payment because hail is a specified peril in his policy. Jane receives nothing because hail isn't among her policy's specified perils, even though the damage is identical and the policies are otherwise similar.

Etymology

The term comes from the early days of marine insurance when specific perils of the sea were individually named and defined, with 'peril' deriving from the Latin 'periculum' meaning danger or risk.

Common Misspellings

Related Terms

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See Also