All Risks Insurance

There are several types of homeowners insurance policies. Coverage can be "all risk" or "named peril". Named peril policies cover only what is specifically noted in the homeowners policy. All-risk policies offer insurance on any peril except those excluded in the policy. The advantage of "all risk" is that it covers your property in the event of a disaster you did not predict. It is important that you read the policies carefully so that you understand your coverage.

Floods and earthquakes are two events that are generally excluded, but coverage can be added for an additional fee. Adding the additional coverage is important if you live in an area where such an event may happen.

A few other exclusions you might see in an "all risk" policy:
* Loss or damage of property from pollution.
* Loss or destruction of property intentionally or by gross negligence.
* Defective design and corrosion, rust & wear and tear.
* Electrical and mechanical breakdown of computers, electronic installations or boiler and machinery.