Special Perils
A peril is the cause, or source, of a loss or risk giving rise to a car insurance claim. Please see perils in this glossary for more details. In car insurance we basically deal with the perils of fire, storm, hail, collision, theft, carjacking and third party liability claims. Special Perils are perils which are added to the policy and are therefore become covered perils. These are perils that were excluded in the basic wording of the policy but are included as special perils and will be charged at an additional premium.
Special perils are added to an existing car insurance contract in the form of an extension. (See also extended coverage in this glossary.) Some special perils that may be applicable to car insurance policies are:
- Damage to cars caused by a tidal wave (that resulted from an earthquake or a volcanic eruption.
- Damage caused by a structure not completely roofed.
- Damage caused by retaining walls.
- Falling debris from aircraft or articles dropped from aircraft.