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🏢 '''All-risk property insurance''' is a form of [[Definition:Property insurance | property insurance]] that covers loss or damage to insured property from any peril unless that peril is specifically excluded in the policy language, as opposed to a [[Definition:Named peril policy | named-peril policy]] that lists only the specific causes of loss for which coverage applies. This "open perils" approach — the term many markets now prefer — creates a fundamentally broader starting point for coverage: rather than the policyholder proving that the loss falls within an enumerated list, the burden effectively shifts to the [[Definition:Insurance carrier | insurer]] to demonstrate that an exclusion applies. All-risk property insurance is a mainstay of [[Definition:Commercial insurance | commercial]] and [[Definition:Industrial insurance | industrial]] property programs globally, and versions of it are offered for [[Definition:Personal lines | personal lines]] homeowners' coverage in many jurisdictions, though terminology and scope differ from market to market.

📑 Under a typical all-risk property policy, the insurer provides coverage for physical loss or damage subject to a defined set of [[Definition:Exclusion | exclusions]] — which commonly include [[Definition:War risk | war]], [[Definition:Nuclear hazard | nuclear hazard]], intentional acts, wear and tear, gradual deterioration, and in many cases [[Definition:Flood insurance | flood]] and [[Definition:Earthquake insurance | earthquake]] (often available via separate policies or endorsements). The policy will also specify [[Definition:Deductible | deductibles]], [[Definition:Sub-limit | sub-limits]] for particular perils, [[Definition:Coinsurance clause | coinsurance clauses]], and [[Definition:Valuation | valuation]] bases (replacement cost versus actual cash value). [[Definition:Underwriting | Underwriters]] price all-risk covers by analyzing the property's construction, occupancy, protection features, and exposure to [[Definition:Catastrophe risk | catastrophe risk]], often relying on [[Definition:Catastrophe model | catastrophe models]] for natural hazard perils. In the [[Definition:Lloyd's of London | London market]] and large commercial placements, all-risk property forms are frequently manuscript policies negotiated between [[Definition:Broker | brokers]] and underwriters, while in personal lines and small commercial segments, standardized wordings — such as those developed by the [[Definition:Insurance Services Office (ISO) | ISO]] in the United States — predominate.

🛡️ The breadth of all-risk coverage is precisely why it commands higher [[Definition:Premium | premiums]] than named-peril alternatives — and why it is the preferred structure for businesses and property owners seeking maximum protection against unforeseen events. Coverage disputes under all-risk policies typically revolve around the interpretation of exclusion clauses, making precise policy drafting and thorough [[Definition:Claims investigation | claims investigation]] critical. The COVID-19 pandemic underscored this dynamic globally: [[Definition:Business interruption insurance | business interruption]] coverage written on all-risk property forms became the subject of landmark litigation — from the UK's FCA test case to proceedings across the United States, Australia, and France — hinging on whether virus-related closures constituted physical loss or damage and whether communicable disease exclusions applied. For risk managers and [[Definition:Insurance buyer | insurance buyers]], understanding the boundary between what an all-risk policy covers by default and what its exclusions carve out is one of the most consequential exercises in any property insurance placement.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Named peril policy]]
* [[Definition:Property insurance]]
* [[Definition:Exclusion]]
* [[Definition:Business interruption insurance]]
* [[Definition:Catastrophe risk]]
* [[Definition:Replacement cost valuation]]
{{Div col end}}

Definition:All-risk property insurance - Revision history

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