All-In-One Policy or Specialist Cover?

There are many kinds of insurance you can look at taking out to protect your possessions. These generally fall into one of two kinds of insurances ‘all in one’ policies or Specialised insurance. If you want to protect your possessions is difficult to know which one is going to give you the best protection.

What is an all in one policy? It is a policy will offer cover for multiple risks and contingencies faced by an individual under a single policy. All your cover such as home, car, health, travel, pet insurance can all be tied up into one single policy.

What is specialist cover? Typically consists of individual policies which are tailored to specific items. These items would usually be considered non-standard or high-risk items.

Both types of policies will protect against standard risks such as theft or damage but it’s the small print you need to consider for your high-risk items that an all in one policy may not protect you as well as you need.

When looking at Specialist insurances, as mentioned above, is usually taken out on ‘High risk’ items. These could include gadgets, Bikes, jewellery, instruments, tools, rare collectables, antiques and art or even classic cars. Essentially it is items that generally have a higher monetary value or are a non-standard item when it comes to calculated risk factors.

What specialised insurance gives you, that an all in one policy is unlikely to, is tailored cover for risks associated with the individual possession. Your standard policy may cover the cost of replacing your laptop should it be stolen, but not compensate you for the software, downloads and other digital information stored on it. This would be where specialised gadget insurance may be more applicable.

Specialist insurance may also provide you cover in the instance you fall within a ‘non-standard’ or niche type of insurance risk. There is an extensive range of underwriting factors that insurers take into consideration when calculating your premium. For some, the mainstream insurer may not be able to offer insurance to items which are considered high risk.

A multitude of different types of cover can be combined into one policy with one insurer. However, with these policies cover is commonly based on standardised risk factors. So, although it’s all in one place it can have its limitations as to the depth in which things are covered.

The cover you get for your high-risk items in and all in one policy depends on the one you buy. Generally, you would be covered for standard events, theft and damage which occurred in the home. High-risk items stolen outside the home, items such as bikes, phones, laptops and jewellery may not be covered in this scenario. Specialised insurance is designed to cover for more risk scenarios applicable to specific items.

There are pros and cons to both types of insurances. On one hand, specialist insurance may feel like an additional monthly expense, but on the other, it’s probably the only way you’ll get 100 per cent of your insurance needs met. An all in one policy provides the simplicity of everything being in one place but it may not provide adequate cover for all eventualities.

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