ALL RISK INSURANCE

WHAT IS ALL RISK INSURANCE

A type of insurance coverage that automatically covers any risk that the contract does not explicitly omit. It offers coverage and protection from all risks or perils that could damage your home, contents or personal/business property.

If an individual need to make a claim due to sudden or accidental damage, the person would be covered on an all-risk policy unless the insurance company proves the damage was caused or is the result of something that is specifically excluded, listed, or limited in the wording. The policy is also called “open perils, all perils, or comprehensive insurance”.

This policy is extended to cover FIRE, DIRECT LIGHTING and additional perils such as:

Explosion
Earthquake
Volcano
Aircraft & Vehicle impact
Flood
Tornado
Riot, Strike & Malicious damage
Water Damage
Chemical explosion having originated within the specification of the policy or due to the extinguishing of such fire or to direct lighting.

TYPICAL EXCLUSIONS IN ALL-RISK POLICIES

Insurance company may choose to include more coverage on their All-Risk policy by limiting exclusions as a value-added perk.There are some common items and risks that are excluded from coverage:

Damage caused by rodents or pests
Some types of water damage including sewer backups
Earth movement
Flood
Nuclear incidents
Acts of terrorism
Breakage of fragile items
Mechanical breakdown
Pollution
Wear and tear
Hidden or latent defects
Gradual damage

“All risks” is the most comprehensive type of coverage available and protects the insured from a greater number of possible loss events, it is priced proportionately higher than other types of policies. The cost of this type of insurance should be measured against the probability of a claim.