In property insurance, what does the term "peril" refer to?

The term "peril" in property insurance refers to a specific risk or event that can lead to a loss or damage to the insured property. Common examples of perils include fire, theft, windstorm, and vandalism. Understanding perils is crucial because insurance policies typically cover only certain perils as specified in the terms of the policy. When a peril occurs and leads to damage or loss, that event is what triggers the insurance coverage, making it a foundational concept in understanding how property insurance operates.

Other terms presented can be relevant in the context of insurance but do not define "peril." Types of property specifically describe the assets being insured, insurance coverage refers to the agreement that provides financial protection, and clauses are stipulations within the policy that outline specific terms and conditions. Thus, none of these terms captures the essence of what a peril is in property insurance.