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A Guide to Property All-Risks Insurance Coverage and Exclusions

Property All-Risks Insurance

Property All-Risks Insurance, often abbreviated as PAR, is a comprehensive insurance policy designed to provide broad coverage for property owners. Whether you own a home, business premises, or other valuable assets, PAR insurance offers protection against a wide range of risks, excluding those specifically listed as exclusions in the policy.

In this blog post, we’ll delve into the key aspects of property all-risks insurance to help you understand its importance and how it can safeguard your investments.

What Does Property All Risk Insurance Cover?

One of the primary advantages of PAR insurance is its extensive coverage. While policies may vary, typical coverage includes:

  • Physical Damage: PAR insurance typically covers physical damage or loss to the insured property caused by perils such as fire, lightning, explosion, theft, vandalism, and natural disasters like earthquakes and floods.
  • Business Interruption: In the event of a covered loss that leads to a temporary shutdown of your business, PAR insurance can include coverage for lost income and ongoing expenses until operations can resume.
  • Equipment Breakdown: This coverage extends to the repair or replacement of machinery and equipment that suffers a sudden and accidental breakdown, helping businesses avoid costly disruptions.
  • Legal Liability: PAR insurance often includes liability coverage, protecting property owners against claims for bodily injury or property damage arising from incidents that occur on the insured premises.
  • Additional Extensions: Depending on the insurer and policy, PAR coverage may be extended to include additional protections such as coverage for Valuable items, Plate Glass, Open Area Contents, and Professional Fees etc.

Exclusions to Keep in Mind

While Property All Risk Insurance offers broad coverage, it’s essential to understand that certain risks may be excluded from the policy. Common exclusions may include:

Acts of War: Damage caused by war, terrorism, or civil unrest is typically excluded from PAR policies.

Gradual Damage: Damage resulting from wear and tear, gradual deterioration, or lack of maintenance is generally not covered.

Design Defects. Rain water damages arising due to structural design defects

Importance of Property All Risk Insurance

  • Comprehensive Protection:PAR insurance provides broad coverage against a wide range of risks, offering peace of mind knowing that your investments are protected.
  • Risk Mitigation:By transferring the financial risk of property damage or loss to the insurer, PAR insurance helps property owners mitigate potential financial losses that could result from unforeseen events.
  • Business ContinuityFor businesses, PAR insurance plays a crucial role in maintaining continuity during times of crisis by covering expenses and lost income during periods of interruption.
  • Legal Compliance:  In many cases, property owners are required by lenders, landlords, or regulatory bodies to carry insurance coverage, making PAR insurance essential for compliance purposes.

Property All-Risks Insurance is a valuable asset for property owners, offering comprehensive protection against a wide range of risks that could jeopardize their investments.

By understanding the coverage provided and any exclusions, property owners can make informed decisions to safeguard their assets and ensure business continuity in the face of adversity. Investing in PAR insurance is not just a financial decision; it’s a strategic measure to protect against the uncertainties of property ownership.

Contact us today to know more about our comprehensive range of Business Interruption Insurance and Business All Risks Insurance.

Picture of Omega Insurance Brokers | Sajad Salim

Omega Insurance Brokers | Sajad Salim

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