A policy that covers all risks protects a lot of different kinds of property. Named-peril policies only cover the risks mentioned in the policy. All-risk policies, on the other hand, cover all risks except those that are specifically not covered. An all-risk insurance usually covers residential, commercial, and personal property. However, the exact types of property covered and what they don't cover depend on the policy and its exclusions.
For homeowners, an all-risk insurance usually covers the foundation, roof, walls, and built-in features like plumbing and electrical systems. Added buildings like garages and decks are also covered by this. If there is damage to the home from things like fire, vandalism, or accidents (unless specifically excluded), the policyholder can make a claim to have the damaged parts fixed or replaced.
All-risk policies generally cover more than just the main building. They also cover things inside the home. This includes things like clothes, tools, appliances, furniture, and more. An all-risk policy might pay to fix or replace things that get damaged because of theft, fire, or something else that wasn't planned for. It is important to check the limits of personal property coverage, though, because valuable things like jewelry, art, or collectibles may need extra riders or endorsements to be fully covered.
All-risk policies cover business buildings, inventory, and tools when they are used for commercial purposes. This can include damage to the building itself or to things like computers, furniture, and tools. It might also cover business delays, which pay the company for lost revenue while the property is being fixed or replaced. Again, some risks may not be covered, like damage from flooding or earthquakes, unless the business owner chooses to get extra security for these risks.
There are times when all-risk policies will also cover other buildings on the land, like fences, sheds, or guesthouses. Also, coverage usually includes some personal property that isn't in the house, like things that are briefly taken out of the house. As an example, an all-risk policy might protect you if your luggage or personal things get damaged while you're traveling.
But it's very important to carefully read through the things that an all-risk policy doesn't cover. Some types of property, like things that are outside, pipes that are buried, or shared areas in apartments with more than one unit, might not be covered unless they are specifically added to the insurance. Also, damage from risks that aren't covered by the policy, like floods or earthquakes, needs its own insurance.
To sum up, an all-risk insurance covers a lot of different types of property, such as your home, your personal belongings, and sometimes even business property. However, coverage is limited and includes some things that other policies don't cover. It's important to know the specifics of your insurance.