Shopping for insurance can sometimes feel overwhelming. Contracts, coverages, and premiums vary from one insurer to another.<\/p>\n\n\n\n
Among the options available, two policies come up frequently: all-risk insurance (also known as comprehensive coverage) and named perils insurance.<\/p>\n\n\n\n
What is the difference between the two? What is included in an all-risk policy? Most importantly, which protection best fits your situation?<\/p>\n\n\n\n
Here is what you need to know to make an informed choice.<\/p>\n\n\n\n
As the name suggests, all-risk insurance covers virtually everything, except for a few general exclusions. It is not limited to a specific list of included risks.<\/p>\n\n\n\n
Note:<\/em> Certain situations may still be excluded or require an endorsement (additional coverage). This is often the case for water damage<\/a>, overland flooding, and other specific risks<\/a>.<\/p>\n\n\n\n Unlike all-risk coverage, named perils insurance only covers the risks explicitly listed in your home insurance policy.<\/p>\n\n\n\n If an event is not specifically mentioned in your contract, the resulting damage may not be covered.<\/p>\n\n\n\n For this reason, a named perils policy is often considered a basic option, whereas an all-risk policy generally provides broader protection.<\/p>\n\n\n\n Yes. The coverage selected for your building and your personal property can differ.<\/p>\n\n\n\n For example, some insurers may cover your dwelling on an all-risk basis while protecting your contents under a named perils option.<\/p>\n\n\n\n When comparing insurance options, always check the specific coverages for both your home and your personal belongings.<\/p>\n\n\n\n An all-risk policy can cover a wide variety of unexpected events, depending on your contract’s terms. Because every insurer is different, a risk covered under an all-risk policy with one company might be treated differently by another.<\/p>\n\n\n\n Examples of situations that may be covered include:<\/p>\n\n\n\n The exact coverage always depends on your specific policy. A given event may be covered, limited, or excluded depending on your contract. Some of these situations might also be covered under a named perils policy, depending on the insurer. In the event of a claim, coverage is determined by your contract’s exact terms.<\/p>\n\n\n\n Be sure to speak with your broker or insurer to understand what your policy actually covers.<\/p>\n\n\n\n Even with an all-risk policy, certain situations are not covered<\/a>.<\/p>\n\n\n\n Your contract may limit or exclude damage related to:<\/p>\n\n\n\nWhat is Named Perils Insurance?<\/strong><\/h3>\n\n\n\n
Can you insure your dwelling and personal belongings differently?<\/strong><\/h3>\n\n\n\n
What Does All-Risk Insurance Cover?<\/strong><\/h3>\n\n\n\n
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What Are the Limits and Exclusions?<\/strong><\/h3>\n\n\n\n