Which of the following are examples of a peril?

• A. Lighting
• B. Explosion
• C. Fire
• D. All of the above

Answer: (D)

Peril is the event that causes a loss to insured property. Fire, lightning, and explosion are classic examples of perils because each is a specific event that can directly cause damage. Since each item listed is a peril on its own, the option that includes all of them is correct. In practice, some policies are named-peril and cover only listed events, while others are open-peril (all-risk) and cover losses from everything except exclusions. Understanding that peril is the cause of loss helps you see why fire, lightning, and explosion all qualify, making the all-encompassing choice the right one. Hazard, by contrast, is a condition that increases the chance of a loss but is not itself the loss-causing event.