What is typically included in an insurance policy's coverage?

Insurance policies are designed to cover certain risks and perils that are explicitly stated within the policy documentation. These specific perils outline the events or incidents that the insurance company agrees to cover. For example, in a homeowner's insurance policy, perils such as fire, theft, or natural disasters may be included, but they are not exhaustive of all possible events that could occur.

This specification is crucial because it defines the scope of coverage and allows policyholders to understand what risks they are protected against. Having clarity on the specific perils helps in managing expectations regarding claims and losses. If an event occurs that is not listed as a covered peril in the policy, the insurer will not typically be liable for the damages experienced in that event.

Other options like including all possible events or just catastrophic events do not accurately capture the structured nature of insurance policy coverage. Similarly, general insurance guidelines do not determine the specific coverages in individual policies; rather, they provide a framework that governs the insurance business at a broader level. Therefore, the precise listing of covered perils in the policy is essential for both the insurer and the insured.