All Risk Insurance – What is it and How Can it Help You?

All-risk insurance is a broad type of property insurance that covers losses from all causes except those specifically excluded in the policy. It provides more comprehensive protection than named-peril policies, helping you safeguard your assets against unexpected risks.

What Is All-Risk Insurance?

All-risk insurance (also called “open peril” insurance) is a flexible insurance policy that protects your property from any type of loss or damage, unless the cause is explicitly excluded in the policy language.

Instead of listing only covered events (as in named-peril policies), all-risk policies cover everything that isn’t excluded — giving broader protection against a wide range of hazards.

How All-Risk Insurance Works

In an all-risk policy, you are covered for losses from any cause that is not specifically excluded. That means if something unexpected happens — and it isn’t on the list of exclusions — the insurance pays for the loss, subject to your coverage limits and deductible.

This is especially helpful for complex risks that aren’t easily categorized or predicted in advance.

All-Risk vs Named-Peril Insurance

Most homeowners and commercial property owners prefer all-risk coverage because it reduces the need to predict every possible hazard.

What All-Risk Insurance Typically Covers

All-risk insurance helps protect against many types of loss, including (but not limited to):

• Fire and lightning damage

• Storm, hail, wind damage

• Theft or vandalism

• Accidental breakage

• Water damage (from sudden events, not maintenance issues)

• Collapse from covered causes

• Impact damage from vehicles or falling objects

Because the list of covered perils is so broad, you often only need to worry about the exclusions list — items the policy does not cover.

Common Exclusions in All-Risk Policies

Even all-risk insurance has exclusions. Typical exclusions may include:

• Wear and tear or gradual deterioration

• Termites, pests, rot, or mold

• Flood and earthquake (unless added)

• Intentional acts or illegal activities

• War or nuclear hazards

• Mechanical breakdown

Understanding what’s excluded is as important as knowing what’s covered.

Types of All-Risk Insurance

Homeowners All-Risk Insurance

Covers your home and belongings against all perils not specifically excluded — more robust than basic named-peril policies.

Commercial Property All-Risk Insurance

Protects business property, buildings, inventory, and equipment from broad causes of loss.

Personal Property All-Risk Insurance

Used for high-value belongings like jewelry, art, electronics, or collections.

Specialty All-Risk Policies

Designed for unique exposures such as fine art, collectibles, or high-end equipment used by creatives and professionals.

Benefits of All-Risk Insurance

Broader Protection

With fewer limitations, all-risk policies cover unexpected losses that named-peril policies might miss.

Simpler Claims Process

Because coverage is automatic for all causes (except exclusions), there’s less dispute about whether a specific peril is covered.

Peace of Mind

You don’t have to predict which perils might occur — if the cause isn’t excluded, you’re protected.

Customizable Policies

You can often add endorsements to include coverage for flood, earthquake, or other excluded risks.

How Much All-Risk Insurance Do You Need?

How much protection you need depends on:

• Value of your property or assets

• Cost to repair or replace

• Risk exposure based on location and use

• Whether you want to add endorsements (e.g., flood, earthquake)

A professional review helps ensure your policy limits match your potential recovery needs.

All-Risk Insurance in Practice

Imagine the following scenarios:

• A sudden hailstorm damages your roof — you file a claim and receive payment because hail isn’t excluded.

• Your expensive personal electronics are accidentally damaged — covered, unless specifically excluded.

• A tree falls during a storm and destroys part of your building — covered under broad all-risk terms.

These scenarios show how all-risk insurance protects you from loss types that might be overlooked in a named-peril policy.

FAQ — All-Risk Insurance Explained

Q: Does all-risk insurance cover flood damage?
Not usually. Flood is typically excluded and requires separate flood insurance.

Q: Is earthquake damage included?
No — earthquake is commonly excluded unless it’s added to the policy.

Q: Does all-risk cover theft?
Yes — theft is generally covered unless specifically excluded.

Q: Are personal possessions covered?
Yes, if personal property coverage is part of the policy and the loss is not excluded.

Q: Is all-risk more expensive than named-peril?
It can be, because of broader protection, but many find the value worth the cost.

Is All-Risk Insurance Right for You?

All-risk insurance is ideal if:

• You want comprehensive protection without predicting every hazard

• You own significant property or high-value assets

• You want fewer coverage gaps

• You want peace of mind instead of limited, itemized coverage

It’s a strong choice for homeowners, business owners, and asset owners who prefer broad protection.

Final Thoughts

All-risk insurance provides some of the most flexible, wide-ranging protection available. By covering all perils that are not explicitly excluded, this type of policy minimizes surprise gaps and simplifies your insurance strategy.

Understanding exclusions and coverage limits remains essential, but all-risk insurance gives you a strong foundation to protect what matters most.

Get a Personalized All-Risk Insurance Quote

Ready to protect your property and valuables with broad coverage?
Fill out the form below to receive a custom all-risk insurance quote tailored to your needs and assets.
Start now — secure peace of mind with smart, flexible protection.