What is All Risks Cover – and Do I Need It?
Caeva O'Callaghan | April 21st, 2020
Why ‘All Risks’ Cover Doesn’t Really Cover ALL Risks (But Can Still Be Very Useful)
All risks cover on your home insurance does exactly what it says on the tin – almost. Get the facts about all risks insurance in this article.
“All risks” means exactly what it says.
When you have all risks cover, your home insurance will cover you for all risks, except any that are specifically excluded. It’s a bit more expensive than standard cover, but it’s worth it for peace of mind.
In this article, we’ll cover the following questions:
- What is all risks cover?
- Do I need all risks cover?
- What’s the difference between all risks and standard home insurance?
All risks is great if you’re extra worried about your home and belongings, but most people don’t need it. Avoid overpaying for your insurance by checking if you really need all risks cover.
All risks cover: what it means
“All risks” is defined as any loss or damage to personal belongings or valuables you own or which are your legal responsibility. Your insurance company will pay for the cost of loss or damage to any item that you tell them that you own when you buy the insurance. This means it will be shown on your insurance schedule, up to a maximum of the sum insured shown against the item.
And yes, “all risks” means exactly that. You have cover for all risks. Flood, fire, theft, damage, dropping it in the toilet, leaving it on the bus – whatever the risk, you have insurance. (Although obviously, if your all risks policy contains exclusions, these apply above all else.)
For example, your policy might have an exclusion on a particular type of flooding. Your all risks cover might insure you against storm damage and the loss of your property resulting from it, but not environmental flooding if you live on a flood plain.
And, as always, all risks cover is not a substitute for regular maintenance. No insurance will cover you for wear and tear, neglect and poor repairs. So, if you leave a pipe leaking with the aim of claiming later, or simply don’t check your pipes regularly, your insurance won’t cover you.
Also, all risks coverage can apply to your building and structures only, or could also include the contents. Make sure they’re selling you “all-risk on building and contents” to avoid a costly misunderstanding.
Other All Risks Cover Exclusions
Wear and tear and gradual damage are not the only risks that this kind of cover typically excludes. All risks insurance exists to give you extra protection in the event of normal household disasters. However, there are some events that no one can predict, or which are your responsibility to prevent, in which case your insurance won’t help you.
These events include, but may not be limited, to:
- Wear and tear
- Pest or rodent damage
- Nuclear incidents
- Acts of terrorism
There are, of course, terms and conditions
Small print also applies to all risks cover, as with any policy. You should read it carefully to know exactly what you’re buying before you sign on the dotted line.
For instance, you have to conceal insured items in an unattended vehicle, in the boot, the glove box, or another compartment. Also, you have to lock the vehicle. If, for example, a thief was able to spot your handbag on the front seat and he could open the passenger door and swipe it, your insurer would reject your claim.
Also, all risks cover will not protect your sports equipment while you’re using it. Golf clubs can be very expensive, so many people insure them. This is common when there’s no lockers at their club, or when they travel overseas to play.
However, if a club breaks during your game, no cover applies. Just like if your snowboard, skateboard or surfboard snaps while you’re riding it. This is because you should use these items properly and safely, and if they still break, take up the issue with the manufacturer.
Do I need all risks cover on my home insurance?
That depends on your lifestyle. Do you regularly travel for work or leisure, and take your belongings out of your home? In that case, all risks would benefit you as your items would be covered on the road.
If you have exceptionally pricey items, like antiques or valuable artwork for example, you may need separate cover. Specialist insurers are available to serve this niche market. You may find that if you only have one or two items you worry about, insuring them separately will be cheaper than adding all risks to your home insurance policy.
If you have questions on what All Risks Cover talk to us in QuoteMe.ie
If you are unsure about what All Risk Cover is and whether you need it on your home insurance, call us and talk to our home insurance team. We can help explain exactly what it is, and talk you through if it’s the best option for your policy. We are available for direct phone calls between 8.30am and 5.30pm each weekday on 0818 224433 or 042 9359051.