In insurance policy contexts, the term 'perils' refers to what?

The term 'perils' in an insurance policy context specifically refers to the causes of loss that are covered by the policy. This includes various risks or events that may lead to damage or destruction of property, or otherwise result in a financial loss. For example, common perils in homeowners insurance include fire, theft, and vandalism. Understanding what perils are covered is crucial for policyholders, as it outlines the specific risks for which they are protected under their insurance contract. By clearly defining these perils, the policy helps ensure that both the insurer and the insured have a mutual understanding of what is protected and under what circumstances claims may be made.