What is an Insured peril?

The Definition of an “Insured Peril” in the insurance industry refers to events that are the source of a loss and/or damage to items etc.

An insured peril provides insight and helps you understand what is covered or not covered in terms of the policy.

Some examples of an insured peril are as follows:

•  Water damage
• Storm damage
• Fire
• Theft
• Wind
• Earthquake
• Flood

Other extensions of cover that can be included under the household contents section are as follows:

Accidental damage – provides cover for items being damaged at home as a result of an unexpected and non-deliberate action.

Power surge – power surge cover is not always automatically included on a household contents insurance policy. Unlike the insured perils mentioned above, power surge is not considered an insured peril which means if one wants to benefit from this cover it has to be selected/requested and included by way of an extension on the policy.

Power surge cover provides cover to items at home which have been subject to damage due to electrical surge not necessarily caused by lightening but more specifically as a result of load shedding.

If this cover is included on your policy, make sure you are familiar with the limit imposed on the policy to ensure you have sufficient cover.

It’s always advisable to read through the terms and conditions of your household contents policy so that you are familiar with the cover that is in place.

Below are a list of things that you should be aware of when it comes to you Household Contents insurance policy:

• make sure your sum insured represents an adequate replacement value for all the moveable items in your home failing which insurers may choose to penalize you in the event of a valid claim by applying Average.

This is a very important condition which applies to most policies in the industry. If, following a loss, there is found to be under- insurance, you will be considered to be your own insurer for the difference between the Sum Insured and the full value at risk and will have to bear a rateable pro-portion of the loss accordingly.

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