What is All Risk Insurance?

“Insurance that covers all kinds of risks, except for dangers which are expressly not covered.”

Financial Fervices Authority

What is All Risk Insurance?

Any risk insurance or open risk policy offers protection and protection from all risks or hazards that can damage your home or your content and personal property unless the risk is specifically excluded in the words of the policy.

This type of insurance will provide protection due to sudden or accidental damage, you will be covered by the policy of all risks unless the insurance company proves the damage was caused or is the result of something that is specifically excluded, registered, or limited to its words.

But all risk insurance only covers risks that are specifically stated in the policy, or a combination policy that provides coverage of all risks in your home, but the coverage is only for the risks stated on your belongings.

Various Types of Risk According to the Insurance

  1. Pure Risk (Pure Risk)
  2. Speculative Risk
  3. Particular Risk
  4. Fundamental Risk
  5. Individual Risk
  6. Property risk
  7. Liability risk

Risks To Be Assured By the Insurance

  • The insured object does not conflict with applicable rules and the public interest. For example, drugs cannot be used as insurance objects.
  • There must be insured or insured objects such as property, illness, loss and so forth.
  • The impact of these risks can be assessed in money or financially.
  • Risks that can be borne must be homogeneous and common.
  • Risks must occur accidentally and cannot be predicted.
  • The premium charged must be in accordance with the level of risk insured. Although the coverage may exceed the price or actual interest, but only within certain limits, or referred to as double insurance.

Exceptions to the All Risk Insurance Policy

Each insurance company can choose to include more protection in their All-Risk policy by limiting exceptions as added value. However, in general, there are some general items and risks which are not included in the coverage scope:

  • Damage caused by rats or pests
  • Some types of water damage include sewer reserves
  • Earth movement
  • Flood
  • Nuclear incident
  • Acts of terrorism
  • Fragile item damage
  • Mechanical damage
  • Pollution


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