In insurance terminology, what does "peril" refer to?

In insurance terminology, "peril" refers to a specific risk or event that can cause loss or damage. This concept is fundamental to many insurance policies, as it defines the various situations that the policy is designed to cover. For instance, in a homeowner's insurance policy, perils might include fire, theft, vandalism, or natural disasters like hurricanes.

Understanding perils is crucial for policyholders, as it determines what risks are insured against and informs them about the limits of their coverage. When a policyholder files a claim, they must demonstrate that the loss or damage resulted from a covered peril outlined in their policy.