When the unexpected strikes, it can be devastating.
An FAP policy provides coverage to your property; its structures and features against damage caused by fire and named perils.
Cover can also be extended to include damage by storm, tempest, flood, water, hail or snow, earthquake, impact by vehicles, aircraft and from subsidence and landslip, as well as malicious damage.
Property All Risk policy is a full comprehensive policy with listed excluded risks.
What is the difference between Property All Risk and Fire & Named Perils?
Major differences: Property All Risk covers claims resulting from direct or indirect damage to the property; whereas the Fire & Allied Perils policy covers claims resulting from a direct damage only such as a direct damage of a thunderbolt to the property and not fires due to a thunderbolt hit on the main electrical supply of the neighborhood.
Property All Risk policy covers, in addition to the fire and allied perils policy
- Forest Fires
- Burglary by forcible entry
- Hold Up
- Accidental Damages to property
- Strikes / Riots and Civil Commotions
The Property All Risk policy has a specific list of excluded risks whereas the Fire and Allied Perils policy has a specific list of the covered risks.
The Property All Risk policy wording evolves the following main exclusion
- Property being worked upon
- Property in course of construction / erection
- Electrical or mechanical breakdown
- Normal wear and tear
- Motor vehicle, water craft or aircraft
- Animals, growing crops or standing timber
- Property whilst in transit
- Consequential losses
- Loss resulting from unexplained circumstances
- Mysterious disappearance
- War, sabotage and terrorism
Is the Property All Risks policy a lot more expensive than the standard fire policy?
Not necessarily. It depends on the risk and the total sum insured. In general, the difference in premium is minimal comparing to the additional benefits provided.