Comprehensive Understanding of All Risk Property Insurance

All Risk Property Insurance


As a property owner, you may have questioned what insurance policy is best suited for safeguarding your valuable investment. Among the wide variety of insurance policies available, 'All Risk Property Insurance' has become a term of interest due to its extensive coverage options. This insurance policy offers a broad spectrum of protection, ensuring a safety net against the unpredictability of life. This in-depth exploration of "All Risk Property Insurance" will clarify what it encompasses, its unique benefits, limitations, and critical considerations when choosing this insurance form.

What is 'All Risk Property Insurance?'

"All Risk Property Insurance," also known as "open perils" or "comprehensive insurance," refers to a type of insurance coverage providing protection against all types of risks that the contract doesn't explicitly omit. This type of policy offers comprehensive coverage extending beyond the average property-casualty market. Property damage or loss can result from several unforeseen incidents, such as fire, windstorms, theft, or vandalism, all of which this insurance is structured to cover. 

Unraveling the Concept of ‘All Risk’

The term 'all risk' may initially convey the idea of complete protection against any conceivable risk, which needs to be more accurate. It's pivotal to note that while 'all risk' implies comprehensive coverage, it does not equate to 'all-inclusive coverage.' This policy typically covers a wide range of incidents except those expressly excluded from the contract. 

If a particular peril isn't named in the exclusion list, it is automatically presumed to be covered. Hence, 'all risk' should be understood as insurance coverage against all risks not explicitly excluded from the policy.

Distinguishing Between 'All Risk' and 'Named Perils' Insurance Policies

To appreciate the expansive nature of an 'All Risk Property Insurance,' it's essential to contrast it with its less comprehensive counterpart, the 'Named Perils' insurance policy. In a 'Named Perils' contract, coverage is only extended to the perils explicitly stipulated in the policy. For instance, if an insurance contract pinpoints fire or vandalism as covered perils, damage or loss resulting from a non-stipulated event like flooding will not qualify for coverage.

On the other hand, the 'All Risk' insurance contract turns this approach on its head and provides coverage against all risks unless they are deliberately excluded from the policy document. A list of typical exclusions may encompass earthquakes, war, pollution, nuclear hazards, and wear and tear, among others. However, policyholders can pay more to include 'excluded risks,' thereby broadening their safety net further.

Understanding the Robust Nature of 'All Risk' Coverage

One of the foremost advantages of an 'All Risk Property Insurance' policy is its comprehensive coverage scope. It offers the insured an elevated level of protection from various loss events, providing peace of mind that a wide array of possible incidents damaging their property can be indemnified. Unlike 'Named Perils' policies, where the insured must prove that their claim falls under the named risks stipulated for coverage, the 'All Risk' policy places the burden of proof on the insurer, who must show that the unwillingness to cover a claim is based on the policy’s clear exclusions.

The 'All Risk Property Insurance’ policy is structured to cater to the unique needs of diverse policyholders. A homeowner might purchase a policy with “all-risk” coverage on their dwelling but choose 'named perils' for their personal belongings. An informed policyholder can also negotiate their contract to maximize coverage against their most pertinent threats by including specific riders or floaters against excluded perils for an additional premium. This advantage of expandable and customizable coverage makes 'All Risk Property Insurance' a desirable choice for many policyholders.

Importance of Policy Awareness

Although an 'All Risk' policy provides broad and robust coverage, it’s still far from being a 'one-fits-all' solution. Policyholders need to understand the policy's fine print to ascertain what is excluded from the coverage and assess if these fit their unique needs and susceptibility to particular risks. It’s extremely crucial that prospective policyholders carefully examine possible exclusions to ensure that their primary areas of concern are covered adequately.

While 'All Risk Property Insurance' is more expensive than other policies due to its wider coverage breadth, policyholders must evaluate the cost in correlation to the probability of a claim and their potential financial risk exposure. Considering the implications of a substantial property loss, those at high risk may find 'All Risk' policies to be a cost-effective investment.


In summary, 'All Risk Property Insurance’ is a versatile, adaptable, and robust insurance policy that provides wide-ranging coverage against many risks. While it might be a slightly more expensive option, its comprehensive coverage breadth can be invaluable for policyholders, covering multiple risks concurrently. Moreover, the option for customization through inclusion riders makes it an appealing choice, providing property owners with a safety blanket tailor-made for their specific needs. However, selecting an 'All Risk.  


Can my 'All Risk Property Insurance' policy also cover my valuable personal items like jewelry and artwork?

Yes, most 'All Risk Property Insurance' policies can be extended to cover personal valuables like jewelry and artwork. However, these often require additional declarations and might be subject to certain limits on coverage. Be sure to communicate with your insurance provider regarding these items.

If my property is damaged by an event that's not explicitly mentioned or excluded in the policy, will it be covered?

Yes, an 'All Risk Property Insurance' policy typically covers all types of damage unless they're mainly listed as exclusions in the policy. If a specific event causing damage is not mentioned or excluded in the policy, it should be covered.

What is the significant difference between 'All Risk' and 'Named Perils' policies? 

The essential difference lies in the scope of coverage. In 'Named Perils' policies, coverage is only given to specific risks listed in the policy. In contrast, 'All Risk' policies cover all types of risks except those expressly excluded in the policy.

I'm renovating my house. How does this affect my 'All Risk Property Insurance'?

You must notify your insurer if you're undertaking significant renovations, as it may affect your coverage. Some policies have specific conditions or exclusions relating to renovations or building works. It's advisable to discuss this with your insurance provider beforehand to understand how it impacts your coverage.

Can I customize my 'All Risk Property Insurance' to cover some excluded risks?

Often, yes. Many insurance companies allow policyholders to pay an additional premium to include coverage for certain normally excluded risks, expanding their coverage. However, this can vary between insurance providers and specific policies.

How does an 'All Risk Property Insurance' handle minor accidental damages?

Policies labeled "all-risks" usually include coverage for accidental damage unless it's expressly excluded from the policy. This could involve fewer cracks like a window breaking or a damaged door.