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Insurers regard a flood primarily as a peril, which refers to a specific risk or cause of loss that an insurance policy may cover. In the context of property and casualty insurance, perils are events that can cause damage to insured properties, such as fires, thefts, or floods. When addressing flood insurance, standard homeowners policies typically exclude flood damage unless specific flood coverage is purchased, highlighting the distinction between the general understanding of a flood as a peril and the actual coverage in place.

Understanding floods as a peril means that they are recognized as a significant risk that can lead to property loss. However, because floods can lead to considerable damage, insurers often place specific coverage options or exclusions on flooding to manage their liability effectively. Thus, recognizing it as a peril emphasizes the importance for policyholders to seek appropriate insurance products, like the National Flood Insurance Program (NFIP), specifically designed to address this risk.