All-Risks Insurance Policy: What’s That?

All risks insurance coverage is a type of property insurance that provides broad coverage for losses or damages to property. Unlike other types of insurance policies that specifically list the types of losses that are covered, an all risks policy covers all types of damages that are not specifically excluded by the policy language.

Despite its broad coverage, there are exclusions to an all risks policy that should be considered. The burden of proof for coverage exclusions under an all risks policy falls on the insurance company, and they must prove that the exclusion applies to the specific damage or loss suffered by the policyholder. For example, if an all risks policy specifically excludes damage caused by flooding, the insurance company would have to prove that the damage to the policyholder’s property was caused by flooding and not by some other covered peril. If the insurance company cannot prove that the exclusion applies, the policyholder may be entitled to coverage under the all risks policy.

To trigger coverage under an all risks policy, policyholders must provide evidence that the loss and/or damage to the covered property occurred during the policy period (which is generally a one year period). It is important for policyholders to understand the limits of their all risks policy and to be aware of any exclusions that may apply. They should also review their policy carefully to ensure that they understand the coverage provided and any limits on that coverage.

In the event of a loss, policyholders should take immediate action to document the damage and contact their insurance company as soon as possible. They should provide the insurance company with all necessary documentation and work with the adjuster to ensure that their claim is processed in a timely and efficient manner.

In situations where policyholders feel that their claim has been unfairly denied or undervalued, it may be necessary to hire an attorney (such as Parrish Law) who specializes in property insurance claims to advocate on their behalf. Attorneys who specialize in property insurance claims can review the policy, assess the scope of coverage, and provide guidance on how to proceed with a claim.

In conclusion, all risks insurance coverage is a broad type of property insurance that provides coverage for most types of losses or damages, subject to a few exclusions. Policyholders should be aware of any exclusions that may apply and should take steps to document any losses or damages in the event of a claim. If a claim is denied or undervalued, it may be necessary to seek legal advice to ensure that the policyholder receives the coverage they are entitled to under the policy.