All-risk insurance is a type of insurance policy covering a wide range of incidents and perils, except those expressly excluded. It is different from peril-specific insurance policies in that the latter cover losses from only the perils listed in the policy. In addition, all-risk insurance policies include damages caused by own drivers for car insurance.
“All-risks” describes insurance coverage that automatically covers any risk the contract does not leave out. So, for example, if an “all-risk” property owner’s policy does not explicitly omit flood protection, the house will be covered on flood damage. Therefore, all-risks insurance is a comprehensive insurance plan offered in the property-casualty market.
Insurance that enables all risks implies the insurance policyholder can look for payment for any events that the contract hasn’t directly eliminated as being covered. Usually, policyholders can pay more to have a rider or floater added to the contract that would cover a specific occasion that was eliminated.
All threats insurance differs from named dangers insurance, in which the policyholder can seek payment/compensation for events stipulated in the policy. The most typical dangers left out from “all-risks” include earthquakes, war, government seizure or damage, wear and tear, infestation, pollution, nuclear threat, and market loss. A private or company that requires coverage for any left-out event under “all-risks” might have the choice to pay a supplemental premium, known as a rider or floater, to have the peril consisted of in the agreement.
Many market practitioners use the term “all risks” to describe this technique to define covered causes of loss in residential or commercial property insurance; it is no longer used in insurance policies because of apprehension that the word “all” proposes coverage that is wider than it is.