What is All Risks home insurance?

By Steve Moores Client Director

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As a listed property insurance specialist, we’re sometimes asked to explain what we mean by the terms “Perils Based” policy, “All Risks” policy and “worldwide cover”.

First, we should explain what a “peril” is. Quite simply, it’s a risk to your home or contents, like fire, flood, storm or theft – the kind of things we all insure against.

Perils Based Policies

A perils based policy will cover a list of insured perils. These are to be found in the policy wording. Any loss deemed to be suffered as a result of one of these insured perils is likely to be paid (subject to any exclusions and excess).

Most “standard” policies are perils based policies. If some eventuality or another is not on the list of perils, then it is not covered, even if that peril is not specifically excluded.

Standard perils include but are not limited to fire, lightning, explosion, earthquake, storm, flood, weight of snow, escape of water, theft or attempted theft and subsidence.

All Risks Policies

All Risks policies are different. These cover all losses, except those specifically excluded. This makes it much harder for an insurer to decline a claim as it will have to prove that the loss is excluded. This usually streamlines the claim process making it easier for your claim to be settled.

There are of course standard exclusions such as faulty workmanship and lack of maintenance, but the cover is generally wider than a perils based policy.

Worldwide Cover

Most specialist insurers such as Hiscox, Chubb and Ecclesiastical provide worldwide cover. This means that your contents, art, antiques and any jewellery (except that subject to a special endorsement such as a safe clause or floating limit) are covered both inside and outside of your home on a worldwide basis (noting that some high-risk countries are excluded, such as Iraq and Syria).

Most “standard” perils based policies only give limited cover outside of the house, under a personal possessions section. For many, especially those not using a broker to specifically tailor a policy, this limit can be too low.

If you want to find out more, just get in touch with our team on 01622 476433.

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Abode is a trading name of Howden UK Brokers Limited, which is authorised and regulated by the Financial Conduct Authority No. 307663. Registered in England and Wales under company registration number 02831010. Registered Office: One Creechurch Place, London, EC3A 5AF. Calls may be monitored and recorded for quality assurance purposes.