In an insurance policy, what section details the covered causes of loss or perils?

The insuring agreement in an insurance policy is the section that specifies the covered causes of loss or perils. This section outlines what events or circumstances the policy will respond to in terms of providing coverage for the insured. It typically describes the risks that are included, such as specific types of damage or loss that the insurer agrees to cover.

By clearly defining the perils covered, such as fire, theft, or vandalism, the insuring agreement helps policyholders understand the scope of their protection. When claims arise, this section is crucial for determining whether the cause of the loss falls under the provisions of the policy and therefore whether a claim will be paid.

Other options may relate to aspects of the policy, but they do not specifically address the various perils covered. The limits of liability, for example, define the maximum amount the insurer will pay in the event of a claim. Loss ratio pertains to the performance measure of an insurance company's underwriting results and is not directly related to the perils covered. Liability typically refers to a type of coverage related to damage or injury to others rather than details about the insuring agreement itself.