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What Is All Perils Coverage? (What You Need To Know)

What Is All Perils Coverage? What You Need To Know
Curtis Killen

As president of KBD, Curtis aims to simplify insurance for his clients. He’s helped lead KBD to become one of Canada’s fastest 400 growing companies according to the Globe & Mail.

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So, what is all perils coverage? In insurance, a peril essentially means a risk. In your policy, this can include things like fire, vandalism, and more. Here, we’re explaining the details so that it’s crystal clear the next time you read your insurance policy.

So, what is all perils coverage?

Unless you work in insurance, terms like all perils, deductible, and liability might go over your head.

What is all perils coverage? | KBD Insurance

In a nutshell, all perils coverage is a type of insurance that provides comprehensive protection against a wide range of risks that may cause a loss to your insured property.

This can include perils like fire, vandalism, water damage, and more.

All perils coverage can be applied to several types of insurance, including home, car and business insurance.

Keep reading to learn the ins and outs of all perils insurance.

Skip ahead to find what you need:

What does all perils mean?

Let’s start with the basics.

What are perils in insurance?

In the insurance industry, a risk is referred to as a “peril.”

So in very simple terms, you can think of all perils as all risks.

This is how the Insurance Bureau of Canada defines a peril:

Insurance peril definition | Insurance Bureau of Canada

Now, when it comes to all perils coverage, it refers to a policy that provides comprehensive coverage for the most common insurance risks.

Keep reading to learn the details of all perils coverage.

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What is all perils coverage?

So, what is all perils insurance coverage, and what does it entail?

All perils coverage is an optional insurance coverage that provides a broad scope of protection to your property. It extends beyond basic coverage options like liability and collision.

Let’s dive into what all perils coverage includes:

All perils coverage is designed to safeguard your property against a wide range of risks, including theft, vandalism, fire, and other damages.

Typical Covered Perils Include:

  • Fire
  • Theft
  • Vandalism
  • Hail
  • Windstorms
  • Falling objects
  • Water damage (from burst pipes, for example)
  • Some natural disasters.

Essentially, it provides coverage for almost any type of damage that can occur to your property, except for specific exclusions mentioned in your personal policy.

It’s essential to review the policy for specific exclusions, as certain perils like earthquakes, floods, or intentional damage might be excluded.

Note: All perils coverage is often coupled with liability insurance, which protects you if you cause injury or property damage to others.

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What does all perils insurance cover?

So, what does all perils offer in terms of coverage?

All perils insurance provides a broad range of protection for your property, subject to changes depending on your policy.

Here’s what it typically covers:

  1. Theft: If your vehicle is stolen, all perils insurance will cover the cost of its replacement or repair, subject to policy limits and deductibles.
  2. Vandalism: If your home, car or business is intentionally damaged or defaced by vandals, all perils coverage will pay for the repairs or replacement.
  3. Fire: If your home, vehicle or commercial property is damaged or destroyed by a fire, whether accidental or intentional, all perils insurance will cover the cost of repairs or provide a settlement if it’s deemed a total loss.
  4. Falling Objects: If you suffer damages due to falling objects such as tree branches or debris, all perils coverage will cover the repair costs.
  5. Weather-related Damages: All perils insurance typically includes coverage for damages to your property caused by natural disasters like hailstorms, windstorms, floods, and hurricanes.
  6. Animal Collisions: If your vehicle is damaged by colliding with an animal, such as a deer or a moose, all perils insurance will cover the repair expenses.
  7. Civil Disturbances: All perils coverage may provide protection if your vehicle is damaged during civil disturbances like riots or protests.
  8. Non-Collision Damage: All perils insurance extends coverage to non-collision-related damages, such as if your car is damaged while parked or if it sustains damage from a falling object while not in motion.

Keep in mind that deductibles and coverage limits may apply, and some policies may offer additional optional coverages to enhance the scope of protection.

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Do I need all perils coverage?

Whether you need all perils coverage really depends on your specific circumstances and preferences. Let’s break it down:

Pros of all perils coverage:

  1. Offers extensive protection: With all perils coverage, you’ll have peace of mind knowing that you’re protected against various risks, not just limited to specific named perils.
  2. Comprehensive coverage: It combines both named perils (specific risks listed in the policy) and open perils (protection against all risks except those specifically excluded).
  3. Suitable for high-value properties: If you own valuable assets, all perils coverage can provide broader protection.

Cons of all perils coverage:

  1. Cost: As you might expect, all perils coverage tends to be more expensive than basic policies that only cover specific named perils.
  2. Overlapping coverage: You might already have some coverage through other insurance policies (e.g., car insurance or health insurance) that duplicates certain protections.

Opt for named perils coverage if:

  1. You’re on a budget: Named perils coverage is generally more affordable and might be suitable if you’re trying to keep costs down.
  2. You’re comfortable with limited protection: If you’re willing to take on some risks yourself or already have other coverage, named perils might suffice.

Ultimately, it’s essential to assess your individual needs, evaluate the risks you face, and consider your budget when deciding whether all perils coverage is the right choice for you.

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Is all perils full coverage insurance?

All perils coverage is not the same as full coverage insurance.

Although the term “full coverage” is commonly used, it can be a bit misleading.

What is full coverage then?

“Full coverage insurance” is a colloquial term often used to describe a policy that includes liability insurance, comprehensive coverage, and (in auto insurance) collision coverage.

However, even this may not cover every possible scenario.

To truly understand what a policy covers, always read the policy documents, including the inclusions and exclusions – and check with your insurance broker about specific terms.

In summary “full coverage” isn’t an official term, and it’s best to ask your insurance broker what coverages you have on your policy.

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What is the deductible for all perils?

Your deductible is the amount of money that you’re required to pay out of pocket before your insurance kicks in to cover a claim.

When it comes to an all perils coverage policy (like with other coverages), the deductible applies when you file a claim for any covered loss.

  1. Typical All Perils Deductible Range: Deductibles for all perils coverage can range from as low as $500 to $2,500 or even higher for high-value properties.
  2. Variable Amounts: Insurance companies usually offer a range of deductible options, allowing you to select the amount that best fits your budget and risk tolerance. This also applies to policies with all perils coverage.
  3. Impact on Premiums: A higher deductible often translates to lower insurance premiums, as you are assuming more financial responsibility in the event of a claim.
  4. Choosing a Deductible: When deciding on a deductible amount, consider your financial capacity to handle out-of-pocket expenses in case of a claim. Select a deductible that strikes a balance between affordable premiums and manageable upfront costs.
  5. One Deductible for Multiple Perils: With all perils coverage, typically, you only have one deductible that applies to any covered loss, regardless of the specific peril involved.
  6. Review Policy Details: Always review the policy documents to understand the deductible structure and any specific details related to all perils coverage.

In summary, the “all perils deductible” can be flexible, with options ranging from hundreds to thousands of dollars – depending on what’s right for you and your circumstances.

Be sure to review the policy details to understand how the deductible applies to your specific coverage.

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So, there you have it.

You can now answer, “What is all perils coverage?” the next time you’re trying to understand how it can apply to your specific insurance needs.

The next step is to make sure that you purchase the right insurance coverages for you.

The team at KBD can help with that.

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