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All Risk Coverage

All-Risk Coverage (versus Named Peril)
(Exclusions: Flood, Earthquake, War, Nuclear Accident)

Insurance policies decide what they will cover and what they won't through two different approaches: "all-risk" or "named peril."

With "named peril coverage," only damages that are mentioned in the policy are covered. So if, for example, your policy says it will cover you for fire and theft and a construction boom knocks out your window, the insurance company will not help pay to fix your window because damage from construction was not specifically mentioned in your policy.

With "all-risk coverage" anything that happens to your house is covered, unless it is specifically excluded in your policy. So if something happens that no one ever thought of, like an escaped circus elephant destroying your living room, you will be covered.

All insurance policies will exclude floods, earthquakes and nuclear war. But, if you live in an area that gets earthquakes and floods you should probably buy special flood or earthquake insurance.

Other exclusions will depend on the company and the specific policy. So read your policy carefully and talk to your insurance agent to make sure you know what is and isn't covered.

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