General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
Which of the following is an example of a peril?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A peril is the actual cause of a loss — the event itself, such as fire, wind, theft, or collision. 'Fire destroying a home' names the event that directly produces the loss. Perils are what insurance policies are written to cover, and they must be fortuitous and either named or implied in the contract. Identifying the peril is the first step in determining whether a loss is covered.
Why the other options are wrong
- B) Careless smoking is a hazard — a condition that increases the chance of a loss — not the cause of the loss itself.
- C) A steep, icy driveway is a physical hazard that makes a fall more likely; it is not the peril.
- D) Living in a flood-prone area is an exposure or hazard condition; flood, not residence, would be the peril.
Memory hook
Peril pulls the trigger; hazard loads the gun. Peril is the event, hazard is the condition.