Additional Coverage and Named Perils in Carmel, CA 

Insurance policies are designed to provide financial protection against various incidents and unforeseen circumstances. One key aspect of these policies that may determine coverage and limitations is the concept of named perils. Understanding this part of your insurance and how it may affect coverage is crucial in ensuring you have the right financial protection.

What Are Named Perils?

Named perils refer to the risks or causes of loss listed as eligible for coverage in your insurance policy. These can include natural disasters (e.g., fires and hurricanes), criminal acts (e.g., theft or vandalism), or other risks. If a loss occurs due to a peril named in your policy, your insurance company is typically obligated to provide financial aid.

For example, if your homeowner’s insurance policy lists fire as a named peril and your home is damaged by a fire, the insurance company may provide a payout and assist in covering the cost of repairs. However, if the damage is caused by a peril not listed in your policy, the insurance company would generally not cover the resulting losses.

In some cases, your insurance policy may include “open perils” or “all risk” coverage. In these situations, you are generally covered for losses arising from any incident that is not specifically excluded within your policy’s language.

What Common Perils May Require Additional Coverage?

While standard insurance policies can include many named perils, there are certain incidents that may often require additional coverage, such as the following:

• Floods—Many standard homeowners and commercial property insurance policies do not typically cover flood damage. You may need to purchase separate flood insurance, especially if you are in a flood-prone area.
• Earthquakes—Like floods, earthquake coverage is usually not included in standard policies and must be purchased separately.
• Windstorms—In some parts of the country, such as areas at high risk of hurricanes, wind damage may not be included in standard policies. Furthermore, coverage for these incidents may also carry a separate deductible.

Learn More

Understanding the concept of named perils and the specifics of your policy can help ensure you have the necessary coverage for potential risks. Always review your policy carefully and consider additional coverage for perils not included in your standard policy.

Contact the team at Monroe-Kelly Insurance Services today to learn more about your options and ensure you are sufficiently covered.