What situation illustrates a peril in an insurance context?

In the context of insurance, a peril refers to a specific risk or cause of loss that is covered by an insurance policy. When considering the situation that illustrates a peril, storm damage to a house is a clear example. This scenario directly involves a tangible event—the storm—that results in physical damage to the property, which is a consequence of the peril. Insurance policies provide coverage for such risks, as they represent the actual events that may lead to financial loss for a policyholder.

In contrast, the other options do not represent perils. A rising homeowner's market speaks to economic conditions affecting property values but does not indicate a specific event that leads to damage or loss. Overlapping policy coverage refers to the issue of policies providing redundant coverage, which may lead to confusion in claims but does not represent a risk or event. Lastly, increasing premiums relate to the cost of insurance but are not tied to any specific loss event, making them irrelevant as examples of perils. Therefore, storm damage to a house is the only situation that exemplifies a peril in the insurance context.