Glossary ·Policy fundamentals

Insured peril

A specific cause of loss or damage that a policy explicitly covers. A claim is only paid if the damage was caused by a peril listed in the policy. Perils not listed — or perils explicitly excluded — are not covered.

Named perils vs open perils (all risks)

Insurance policies use one of two approaches to defining what causes of loss are covered:

Named perils

The policy lists specific causes of loss that are covered. If the cause of your loss is not on the list, the claim is not covered — even if it was not explicitly excluded. Most standard UK home insurance policies work this way.

Example: "This policy covers loss or damage caused by fire, lightning, explosion, earthquake, storm, flood, escape of water, theft..."

Open perils (all risks)

The policy covers any cause of loss that is not explicitly excluded. The default is cover; exclusions narrow it down. Broader protection, but the exclusions still require careful reading. Common for high-value personal possessions.

Example: "This policy covers accidental loss or damage to insured items unless caused by [listed exclusions]."

Common insured perils in UK property insurance

  • Fire and explosion: Damage from fire, including fire caused by lightning. Smouldering or scorching without flame may be excluded on some policies.
  • Storm: Wind, rain, hail, snow, or ice of a severity considered exceptional. Gradual wear caused by weather is not storm damage.
  • Flood: External water ingress from rivers, sea, or surface water. Distinct from escape of water (internal). See our flood insurance guide.
  • Escape of water: Damage caused by water leaking or bursting from internal pipes, tanks, or appliances.
  • Subsidence: Ground movement under the property causing structural damage. Usually subject to a higher excess (often £1,000).
  • Theft: Typically requires forcible and violent entry for buildings claims. Contents theft may cover items inside a locked car (subject to limits).

Insured peril FAQ

Frequently asked questions