Understanding The Meaning Of 4 And 8 In Insurance

  • John A. Osborne
  • Jan 06, 2023
Small Business Insurance Vermont

Insurance policies can be complicated, and understanding the various terms and conditions can be a daunting task. Two terms that often come up in insurance policies are 4 and 8. These numbers are not random but are, in fact, significant in the insurance industry. Understanding what they mean is essential when purchasing an insurance policy.

In this article, we will take a closer look at what 4 and 8 mean in insurance policies and provide an in-depth explanation of their significance.

What Is 4 in Insurance?

The number 4 in insurance refers to the four major perils that are covered by most standard insurance policies. These perils are:

  • Fire and lightning
  • Wind and hail damage
  • Explosion
  • Smoke damage

These perils are commonly known as the “basic four.” They are the most common types of damage that can occur to a property, and as such, are covered by most standard insurance policies. However, it is important to note that not all policies include all four perils. Some policies may only cover a subset of these perils, so it is important to read the policy carefully before purchasing.

What Is 8 in Insurance?

The number 8 in insurance refers to the eight additional perils that can be covered by an insurance policy. These perils are:

  • Vandalism and malicious mischief
  • Damage caused by vehicles
  • Damage caused by aircraft
  • Smoke damage from sources other than fire (e.g., cooking)
  • Water damage from plumbing, heating, or air conditioning systems
  • Theft
  • Breakage of glass and safety glazing material
  • Volcanic eruption

These perils are known as the “broad eight” and are typically covered by more comprehensive insurance policies. If you are concerned about any of these perils, it is important to check that they are included in your policy.

Why Are 4 and 8 Important?

Understanding the difference between the basic four perils and the broad eight perils can help you choose the right insurance policy for your needs. If you are looking for a policy that covers only the most common types of damage, a policy that covers the basic four perils may be sufficient. However, if you are concerned about additional risks, such as theft or water damage, it may be worth considering a policy that covers the broad eight perils.

It is also important to note that insurance policies can vary widely in terms of what they cover. Some policies may have exclusions or limitations that you need to be aware of. Reading the policy carefully and asking questions can help ensure that you are getting the coverage you need.


Understanding what 4 and 8 mean in insurance policies can help you make informed decisions when purchasing insurance. Knowing which perils are covered by your policy can give you peace of mind and protect you from unexpected costs. Remember to read the policy carefully and ask questions if you are unsure about anything.

Related Post :

Leave a Reply

Your email address will not be published. Required fields are marked *