"All risks" and the advantages

"All risks" insurance covers most accidents that may directly damage your home, your furniture, your assets or outbuildings.

Basic coverage includes fire, vandalism, wind damage or falling objects, as well as public liability coverage. "All risks" insurance covers accidents that people don't normally think about, such as accidentally spilling paint on a carpet.  If you so choose, you can add optional coverage that suits your situation; for example, you may buy insurance for aboveground pools or earthquakes.

However, even "all risks" insurance comprises exclusions such as normal wear and tear, gradual deterioration of goods, pollution, mechanical failure and flooding.

If you are an owner, your "all risks" policy covers your property and is generally based on an overall amount: the amount for which your home, furniture, assets and outbuildings are insured. It includes additional living expenses in case you have to live elsewhere after a loss. Since the apportionment of the insurance amount is not predetermined, the overall amount adds some flexibility.