Understanding Home Insurance: All Risks vs Insured Perils
When it comes to home insurance, there are two main types – Insured Perils and All Risks.
The key difference is in their coverage.
Insured perils, as its name implies, provides coverage only for specific events that you’ve chosen to insure against. You can make a claim only when one of the listed peril events occurs.
On the other hand, all-risks is on an exclusion basis, covering everything except for listed events. You can make a claim for almost everything, unless it is explicitly excluded in the policy wordings. Because of the broader coverage, all-risks policies are typically more expensive.
Insured Perils | All-Risk |
| Only covers: | Covers everything but these: |
| Fire | Damage due to electrical breakdown |
| Explosion | Wear and tear |
| Damage caused by aircraft, flying devices (including drones), or objects dropped from them | Dishonesty or fraud of insured |
| Building damage from road vehicles or animals that are not owned or responsible for by Insured | Wilful acts of Insured |
Smoke damage due to faults in heating or cooking appliances
| Scratching or denting of fragile wares |
Bursting or overflowing of domestic water tanks, apparatus or pipes, but not:
| Damage due to nuclear materials |
| Riot, strike or civil commotion. | Unoccupied building for more than 60 consecutive days |
| Malicious damage | Consequential loss, damage or liability |
| Burglary, with force or violence | Unexplained shortages and mere disappearances |
| Storm (including hurricane, hail, cyclone, typhoon, high winds and gales), earthquake and volcanic eruption | Other exclusions stated in the policy wordings |
When considering which policy is right for you, it's essential to assess your needs and preferences.
Get insured with the right help.
Having an expert on your side to help you pick the right insurance plan and find the best price can be a big help. If you need help finding the right insurance coverage, consider working with an experienced broker like eazy. Our team can advise you on various insurance plans, including motor, health, corporate and lifestyle coverage. Speak to us today to get your insurance needs covered.
Contact us for policy quotation,
comparison and unbiased advice now!