What is the difference between an "all risks" policy and a "named perils" policy ?

Q: Please let me know about this policies and the major difference between them

suchitra.sen,

15th September 2011

Legal in Bangalore

all risk policy vs named perils policy

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Named Perils insurance includes the specific events during which the insurance is applicable. For example, you can get insured if there is a frequent occurrence of natural or accidental disasters such as fire or Earthquakes that your property is prone to, provided these events are specified in the insurance policy.
Where as in All Risk Policy, the insurance can be claimed on the property on all the unexpected events of disasters, except those specifically mentioned in the policy. Accidents happen in the most unexpected ways and forms, so this type of policy is best suited for uncertain occurrence of events.

samuel.jakes,

15th September 2011

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The main difference between two policies is that one type of policy covers what is "named" (included) in the insurance while the other covers what is not included. Named perils policy means the insurance policy for your home will only cover property damage that has resulted from some list of perils/loss. The cost of the premiums will depend on the location of the property and the likelihood of the specific peril like wind, fire, lightning, explosion, smoke. All risks policy covers your home from damages caused by any type of disaster which is not included in the policy. Floods and earthquakes are two events that are typically excluded and these can be included in policy with payment of additional fees.

Srinivas , Chennai

15th September 2011

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