All Risks Insurance – Better Cover For Landlords & Property Owners
All Risks Insurance
= Better Cover for Landlords & Property Owners
Essentially, insurance companies write two kinds of policies for home owners and small businesses:
Named perils (also known as landlord insurance by home insurers) and
(also known as ‘Property Owners’ insurance by some insurers / agents / intermediaries).
Here’s 3 Reason on how they differ:
Named Peril Policy
1. A named perils (landlord home insurance) policy covers only what is specifically noted in the policy
e.g. if it doesn’t say you are covered for malicious damage or accidental damage, then you aren’t
- Since the named perils insurance policy only covers specific perils, it is usually less expensive than all-risks cover but this is not always the case
- When cover is written on a named perils basis, the burden is on the insured to prove that one of the named perils caused the loss
All Risks Policy
- An All-Risks (or Property Owners) policy covers everything except what is specifically excluded in the policy
- The All-Risks insurance policy is usually more expensive than the named perils policy because it is more comprehensive but this is not always the case
- Under an All-Risks policy, the burden is on the insurance company to prove that the peril causing the damage is excluded; otherwise, cover applies
So Which Is Better?
- Depending on the lending, you may not have a choice as commercial lenders require one to effect All-Risks insurance which is a more comprehensive cover
- For others, the type of cover is down to how much risk you are willing to take on yourself i.e. in the event of a significant or complicated property damage claim,
the All-Risks policy will prove to be much more comprehensive and may allow cover for more extensive aspects of the damage and thus places you in the same financial position as before the damage i.e. not at a loss
- The advantage of an All-Risks policy is that it covers you in the event of a loss you did not predict.
A named perils policy will cover you for the most common perils which are the ones we tend to think of i.e. theft, fire, storm, water damage.
Even though an All-Risks policy could cost more, in a world where freak accidents happen, the broader your insurance coverage, the better off
you’ll probably be as ‘unexplained loss’ is also generally covered
Typical other headline cover features which an All-Risks policy will provide
(and a named perils policy will not) are;
- Loss of Rent in excess of 12 months
- Significantly higher cover for Tracing & Accessing leaks
- Replacement of Locks
- Fire Brigade Charges & Accidental Breakage of Glass
- Public/Property Owners Liability with a higher €6.5m limit of indemnity
- Broader cover for casual property repairs & maintenance persons
- Cover (restricted) for un-occupancy periods
- most categories of tenancy types incl. Students, Air BnB / RAS etc.
The named Peril Policy may be Cheaper, but will you be covered in the event of a claim?
Don’t risk it, Cover yourself with All Risks Insurance.