What is the difference between All Risks Cover and Perils based cover?
Under a normal building combined perils based policy, the insurer only covers defined events, i.e. listed perils such as fire, lightning, explosion, storm, wind, water, hail, theft, malicious damage, earthquake etc. In other words, if the cause of the loss or damage is not one of the listed perils, there is simply no cover. This is a restrictive form of cover.
Assets All Risks policies on the other hand are much simpler. The principal is that everything is covered unless it is specifically excluded. In other words, if the cause of the loss or damage appears on the list of exclusions, it is not covered. If it does not appear, then it is covered.