In property insurance, what are referred to as "perils"?

In property insurance, "perils" specifically refer to the causes of loss that can affect the insured property. This can include various events or incidents, such as fire, theft, vandalism, storm damage, and more. Insurance policies typically outline the specific perils that are covered, and understanding these is vital for both insurers and insured parties.

For instance, if a property is covered against fire as a peril, then any damage resulting from a fire would be compensated by the insurance policy. Conversely, if a peril is not covered (like flood damage in a standard homeowners policy), the insurer would not be liable for that type of loss.

The other options refer to different aspects of insurance. Coverage limits define how much an insurer will pay for a claim, financial reserves are the funds set aside by insurers to meet future claims, and individuals covered under the policy relate to the policyholders rather than the causes of loss. Hence, identifying perils correctly is fundamental in understanding property insurance.