You’ve probably heard the term all risk when shopping for home insurance. It sounds comprehensive. Safe. Like everything is covered.
And to be fair, all risk coverage is broad. It’s one of the best types of home insurance you can get. But here’s what most people don’t realize: “all risk” (also commonly referred to as all perils) doesn’t actually mean all risks.
There are exclusions, conditions, and fine print that can leave you unprotected in situations you assumed were covered. And if you don’t understand what your policy actually covers, you could be in for an expensive surprise when you file a claim.
Let’s break down what all risk really means, what it covers, what it doesn’t, and how to make sure you’re actually protected.
What Is “All Risk” Coverage?
In home insurance, “perils” are the risks or events that could damage your property—fire, theft, windstorm, water damage, and so on.
All perils coverage (also called comprehensive coverage) means your home and belongings are protected against any peril except those specifically excluded in your policy.
It’s the broadest type of home insurance available. Instead of listing what is covered, it covers everything unless the policy explicitly says otherwise.
Compare that to “named perils” coverage, which only protects you against risks that are specifically listed in your policy. If a peril isn’t named, you’re not covered.
All perils coverage is more expensive than named perils, but it provides significantly better protection—especially for unexpected or unusual types of damage.
What All Perils Coverage Typically Includes
With all perils coverage, your home and belongings are protected against a wide range of risks, including:
- Fire and smoke damage. Whether it’s a kitchen fire, wildfire, or fire from a neighboring property, you’re covered for repairs and replacement.
- Theft and vandalism. If someone breaks into your home and steals your belongings or damages your property, all perils coverage protects you.
- Windstorm and hail. Damage from storms, including roof damage, broken windows, and fallen trees, is covered.
- Water damage from burst pipes. If a pipe bursts inside your home and floods your basement or damages your floors, you’re covered.
- Falling objects. Damage from tree branches, debris, or even objects falling from aircraft is typically covered.
- Weight of snow, ice, or sleet. If heavy snow causes your roof to collapse or damages your structure, all perils coverage applies.
- Electrical damage. Power surges, faulty wiring, and electrical fires are usually covered.
- Accidental glass breakage. If you accidentally break a window or glass door, you’re covered.
- Explosion. Whether it’s a gas explosion or something else, damage from explosions is covered.
These are just examples. The key point with all perils coverage is that if a peril isn’t specifically excluded, you’re protected.
What All Perils Coverage Does NOT Include
Here’s the catch: “all perils” doesn’t actually mean all perils. There are standard exclusions that apply to nearly every home insurance policy, even with comprehensive coverage.
Sewer Backup
If your sewer or drain backs up and floods your home, standard all perils coverage won’t help. You need sewer backup coverage, which is usually available as an optional add-on.
This is especially important if you have a finished basement or live in an area with aging sewer infrastructure.
Flood Damage
Standard all perils coverage does not include overland flooding—water that enters your home from outside due to heavy rain, river overflow, or storm surge.
If you live in a flood-prone area, you need separate overland flood coverage. Many insurers now offer this as an add-on, but it’s not included in standard policies.
Important distinction: Water damage from a burst pipe inside your home is covered. Flooding from outside is not, unless you have flood coverage.
Earthquake Damage
Earthquakes are almost always excluded from standard home insurance policies. If you live in BC or another seismically active region, you need separate earthquake insurance.
Earthquake coverage typically has a high deductible (often 10–20% of your home’s insured value), but it’s essential protection if you’re in a high-risk zone.
Damage from Lack of Maintenance
Insurance covers sudden and accidental damage—not damage that results from neglect or poor maintenance.
If your roof leaks because you didn’t replace worn-out shingles, that’s not covered. If a tree falls on your roof during a windstorm, that is covered.
Insurers expect you to maintain your home in good condition. If damage could have been prevented with reasonable upkeep, your claim may be denied.
Gradual Damage
All perils coverage protects against sudden, unexpected events. It doesn’t cover gradual wear and tear or slow deterioration.
Examples of gradual damage (not covered):
- Mold that develops over time due to poor ventilation
- Rot from long-term moisture exposure
- Rust or corrosion
- Deteriorating foundations or settling
Vacant Home Damage
If your home is vacant for more than 30 consecutive days (the exact period varies by insurer), your standard policy may not cover certain types of damage—especially water damage, theft, and vandalism.
If you’re planning to leave your home vacant for an extended period, notify your insurer and ask about vacant home coverage.
Intentional Damage
Damage you cause intentionally is never covered. This includes damage caused by illegal activities or deliberate acts.
Wear and Tear
Normal aging, wear and tear, and cosmetic damage are not covered. Insurance is meant to protect against unexpected losses, not routine home maintenance.
Nuclear Hazard, War, and Government Action
These are standard exclusions in virtually all home insurance policies. Damage from nuclear incidents, acts of war, or government seizure is not covered.
What About My Belongings?
All perils coverage can apply to both your home’s structure (the building itself) and your personal property (the stuff inside).
However, many policies offer all perils coverage for the structure but only named perils coverage for contents. That means your belongings might only be protected against specific risks like fire, theft, and windstorm—but not other perils.
Check your policy to see whether your contents are covered on an all perils or named perils basis. If it’s named perils, consider upgrading to all perils for your belongings too. It costs more, but it provides much better protection.
Special Limits on High-Value Items
Even with all perils coverage, there are often sub-limits on certain types of personal property:
- Jewelry, watches, and furs. Policies typically cap coverage at $5,000–$10,000 total, even if the items are worth more.
- Cash and precious metals. Limits are usually very low—often just a few hundred dollars.
- Electronics and computer equipment. Some policies cap coverage for these items.
- Artwork, collectibles, and antiques. Standard limits may not reflect the actual value of high-end items.
- Bicycles and sports equipment. Coverage may be limited, especially for theft away from home.
If you own high-value items, you need to schedule them separately (also called adding a rider or endorsement). This provides full coverage with no sub-limits and often includes protection against accidental damage or mysterious disappearance.
How to Make Sure You’re Actually Protected
All perils coverage is a great starting point, but you need to understand your specific policy and make sure it fits your needs. Here’s how to do that:
Read Your Policy—Especially the Exclusions
Don’t just assume you’re covered. Read through your policy document, paying close attention to the exclusions section. If anything is unclear, ask your broker to explain it.
Add Optional Coverage Where Needed
Depending on your location and risk profile, consider adding:
- Overland flood coverage if you’re in a flood zone or near water
- Earthquake coverage if you’re in a seismically active area
- Sewer backup coverage if you have a finished basement, older plumbing, or live in an area where heavy rainfall or flooding can overwhelm municipal systems
- Identity theft coverage for help recovering from fraud
- Service line coverage for repairs to underground utilities (water, sewer, power lines)
Upgrade Contents to All Perils
If your policy only covers contents on a named perils basis, ask your broker about upgrading to all perils for personal property. It’s worth the extra cost for comprehensive protection.
Schedule High-Value Items
Make a list of valuable items—jewelry, art, collectibles, musical instruments, cameras, bikes—and ask about scheduling them separately. You’ll need appraisals or receipts for high-value items.
Keep Your Home Well-Maintained
Remember, insurance doesn’t cover damage from neglect. Stay on top of maintenance:
- Replace aging roofs before they start leaking
- Fix plumbing leaks promptly
- Clean gutters and downspouts
- Service your furnace and water heater regularly
- Inspect your home for signs of wear or damage
Good maintenance not only prevents damage—it also protects you from claim denials.
Notify Your Insurer of Changes
If you’re leaving your home vacant, doing major renovations, running a home business, or making other significant changes, let your insurer know. Failing to disclose changes can void your coverage.
Review Your Policy Annually
Your coverage needs change over time. Review your policy every year—or whenever you experience a major life change—to make sure your coverage still fits.
Common Misconceptions About All Perils Coverage
Let’s clear up some common myths:
Myth: All perils means everything is covered.
Reality: All perils coverage has exclusions. Flood, earthquake, sewer backup, and damage from poor maintenance are commonly excluded.
Myth: My belongings are automatically covered for everything.
Reality: Your contents might only have named perils coverage, even if your building has all perils. Check your policy.
Myth: I don’t need to document my belongings.
Reality: After a loss, you’ll need to prove what you owned. Take photos, keep receipts, and create a home inventory.
Myth: All perils coverage is too expensive.
Reality: The cost difference between all perils and named perils is usually modest—and the extra protection is well worth it.
Myth: If I file a claim, it will automatically be approved.
Reality: Claims can be denied if the damage falls under an exclusion or if you didn’t maintain your home properly.
Questions to Ask Your Broker
When reviewing your home insurance, ask:
- Do I have all perils coverage for both my building and my contents?
- What are the main exclusions in my policy?
- Do I need to add flood, earthquake, or sewer backup coverage?
- Are my valuables adequately covered, or should I schedule them separately?
- What happens if my home is vacant for more than 30 days?
- How often should I update my coverage limits?
A good broker will walk you through your policy, explain what’s covered and what’s not, and help you close any gaps.
The Bottom Line
All perils coverage is the gold standard for home insurance—but it’s not a magic shield that protects against everything.
It covers a wide range of unexpected damage, but flood, earthquake, sewer backup, and maintenance-related damage are typically excluded. And even with all perils, you might have limits on high-value belongings.
The key is to understand what your policy actually covers, add optional coverage where you need it, and maintain your home so you’re protected when something goes wrong.
At Park Insurance, we help BC homeowners build coverage that fits their homes, their risks, and their peace of mind. Whether you’re reviewing an existing policy or shopping for new coverage, we’ll make sure you understand what you’re getting—and what you’re not.
Not sure what your home insurance actually covers? Contact Park Insurance to book a policy review. We’ll explain your coverage, identify any gaps, and help you build protection that actually works when you need it.
