Home Insurance That Covers All Risks

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

We first have to explain what a “peril” is. It is 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 work differently. They cover all losses, except those specifically excluded. This makes it much harder for an insurer to decline a claim as they will have to prove that the loss is excluded. This usually streamlines the claim process.

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 of the mid and high net worth policies we offer also give 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 think you might benefit from an All Risks policy or worldwide cover, please speak to us and we’ll find a policy best suited to you and your lifestyle by calling 020 8256 4901.