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Named perils or all risks?
Short answer
A named perils policy pays for what is on the list. An all risks policy pays for what is not excluded. The difference shows up on the day nobody can say what caused the damage.
Hull cover is written in one of two ways, and the choice is legal rather than commercial. A named perils wording lists the events it pays for: fire and explosion, storm and lightning, theft of the whole craft, damage in storage. If what happened is not on that list, there is no claim, however reasonable the loss feels. An all risks wording turns it around and pays for accidental damage unless the policy excludes it, which makes the exclusions the part you actually have to read.
The practical consequence is about proof, and that is where the money is. Under named perils the owner has to place the loss inside one of the listed causes. Under all risks the insurer has to point at the exclusion that applies. Think of the boat found with water over the cabin sole and nobody able to say which fitting let go. Under one system that uncertainty is the owner's problem, under the other it is not, and the same uncertainty turns up in grounding, in quiet damage found at lift out and in anything discovered weeks after it happened.
When you compare two quotes, read the heading of the hull section first to see which system you are being offered, then read the exclusions in full, then check two more things: how the boat is valued if it is a total loss, and what deductible applies to which kind of damage. Grounding, contact with a pontoon or a floating object, vandalism and theft of parts are losses often missing from a short list, and owners meet them often. Our own hull cover is a named perils wording: Basis lists natural perils, fire and explosion and theft of the whole boat; from Basis Plus accident, theft of parts and vandalism are added.
Worth remembering
The list
is a named perils policy: it pays what is listed
The exclusions
are an all risks policy: it pays what is not excluded
If the cause is never established, that is your problem under one system and not under the other.
Questions
What owners ask us about this
What does all risks mean on a boat policy?
Accidental damage to the boat is covered unless the wording excludes it. That makes the exclusions the important pages, not the list of insured events.
Who has to prove the cause?
Under named perils, the owner must show the loss falls under a listed cause. Under all risks, the insurer must show an exclusion applies.
Is the outboard treated the same way?
Often not. Theft of the whole boat may be listed while parts and equipment sit elsewhere, so check which section your engine falls into.
Does either system cover wear and tear?
No. Gradual deterioration, corrosion and osmosis are excluded in both, because they are maintenance rather than accident.
Related
Not sure whether you qualify?
Whether it is “Named perils or all risks?” or another question: send us your residence and the flag your boat flies. You will get a straight answer in one email; including a no, if that is the answer.
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