27 May 2015

Home insurance: comprehensive or named risk?

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Customers often ask us if they should take out “comprehensive” or “named risk” insurance. They also ask about the differences between the two, and want to know how their choice will affect the price.

Comprehensive vs named risk

It’s really quite simple—comprehensive insurance covers your insured possessions against every type of damage except as specifically excluded by the contract. Inversely, named risk insurance covers only the types of damages named in the contract.

In short:

Comprehensive insurance = lots of coverage

Named risk insurance = more limited coverage

What’s best for my home?

To be sure you’re making the right decision, start by taking stock of your possessions. From there, you’ll be able to determine which type of insurance is best for you. If your home is full of valuable things, you’ll be better off with comprehensive insurance. You can even add specific riders, like a clause that covers water damage. If on the other hand you’re a student and are renting an apartment, a named risk policy will save you money and likely be better suited to your needs.*

Comprehensive, named risk… Which one costs more?

A policy that offers more coverage costs more, so comprehensive insurance is always more expensive, but also gives you more protection. It all comes down to the value of your possessions.

*This advice is for information purposes only. Each situation is different and can require specific or complementary coverage.