A named perils insurance contract only covers the perils specifically stipulated in the policy. As an example, an insurance contract might specify that losses caused by fire or vandalism will be covered. Therefore, an insured who experiences a loss or damage caused by a flood cannot file a claim to his or her insurance provider, as a flood is not named as a peril under the insurance coverage. Under a named perils policy, the burden of proof is on the insured.
By contrast, an all risks policy covers the insured from all perils, except those specifically excluded from the list. Contrary to a named perils contract, an all-risks policy does not name the risks covered, but instead, names the risks not covered. In so doing, any peril not named in the policy is automatically covered.
The most common types of perils excluded from all risks include earthquake, war, government seizure or destruction, wear and tear, infestation, pollution, nuclear hazard, market loss, etc.
An individual or business who requires coverage for any excluded event under all risks may have the option to pay an additional premium, known as a rider or floater, to have the peril included in the contract.
A Digital Wallet for All Your Web3 Needs
From crypto to NFTs and beyond, accessing a wealth of DeFi platforms is simpler than you might think. With OKX, a leading digital asset financial service provider, you can access world-class security as you trade and store assets. You can also connect existing wallets and win up to $10,000 when you complete a deposit of more than $50 through a crypto purchase or top-up within 30 days of registration. Learn more and sign up today.