A tornado that destroys property is classified as which of the following?

A tornado that destroys property is classified as a peril because it represents a specific cause of loss or damage that can adversely affect property. In the context of insurance, a peril is an event that triggers a claim when it leads to damage of insured property. Tornadoes, being natural disasters, directly result in destruction, making them clear examples of perils covered by insurance policies.

Understanding perils helps consumers and insurers assess risks when selecting coverage and determining premiums. For instance, in a homeowners insurance policy, tornadoes would generally be listed among the perils that are covered, allowing policyholders to receive compensation for damages caused by such events.

In contrast, a loss refers to the actual financial impact or damage experienced due to an event, a physical hazard indicates a condition or situation making a loss more likely but is not an event itself, and a pure risk involves situations where there is a chance of loss or no loss, with no opportunity for gain. Thus, the classification of a tornado as a peril aligns precisely with the insurance terms used in risk assessment and policy structuring.