What Is An All Risk Property Insurance Policy?

https://robfreeman.com/solar-property... - An all risk property policy is a special type of property insurance policy that covers all perils unless specifically excluded. An “all risk” property insurance policy is what they call an “open perils” policy. Open perils means that every peril is covered unless it’s specifically excluded. A peril is any event, incident, occurrence or situation that could give rise to property damage or destruction. Certain perils that would be excluded in an “all risk” property policy are perils such as earthquake, flood, equipment breakdown, infestation, etc. An open perils policy is in contrast to a named perils policy. A named perils policy will cover only the perils that are listed in the policy. There are two named peril policies, “basic” and “broad”. The basic form covers 11 perils or causes of loss including fire or lightning, smoke, windstorm, hail, explosion, riot or civil commotion, aircraft and/or vehicles (striking the property), glass breakage, vandalism & malicious mischief, theft, and volcanic eruption. The “broad” named perils policy includes all of the above perils, but adds falling objects, weight of ice, snow or sleet, accidental discharge or overflow of water or steam from within plumbing or related systems (does not include discharge or overflow of water from a sump) sudden and accidental rupture of heating, air conditioning, fire protective sprinkler, or hot water heating system, freezing of plumbing or related systems and sudden and accidental damage from artificially generated electrical current. The “all risk” policy may also be referred to as a “special” form or comprehensive form.