What are the causes of loss insured against in an insurance policy known as?

The causes of loss that are covered by an insurance policy are referred to as perils. This term encompasses various risks or events, such as fire, theft, flood, or vandalism, which the insurance company agrees to cover in the event that they cause damage to the insured property. Understanding what constitutes a peril is crucial for both agents and policyholders as it defines the scope of coverage provided by the insurance policy.

In contrast, claims refer to the requests made by policyholders for payment based on the covered losses, liabilities are the legal responsibilities one has to others, and hazards denote conditions that may increase the likelihood of a loss occurring but do not represent causes of loss themselves. Thus, distinguishing between these terms is essential for understanding the structure and coverage of property insurance policies.