What is All-Risk Coverage?

You may come across a bunch of insurance plans when finding your current home insurance policy. One option that you may have come across is called an all-risk insurance contract, also known as an open perils policy. This is a type of coverage option that is meant to cover in all cases of damage unless specified otherwise. You may want to consider updating your current home insurance policy.

Why Having an All-Risk Policy Makes a Difference

This is a great coverage to have in times where you are moving furniture. If you are trying to mount a TV but it falls and you are left with a broken tv and damaged floor, then you would still be covered. If you are moving a couch from one room to another room and you damage the wall and the couch, this would be covered. There are countless ways that this policy can be beneficial, however, it is also a more expensive policy. Prices are dependent on factors about your home like location, what is being insured, etc. The best way to find a better price is to do some comparative shopping.

How to Choose Proper Coverage?

There are different types of plans that are available. You want to make sure that you understand your options and what that means for you. The two types of all-risk home insurance policies that you will encounter will either be a HO-5 or a HO-3 policy. Both of these policies will cover all risk on your building, but the HO-3 has limited coverage of your property. You want to make sure you understand this difference with your insurance company more in-depth. You also want to see how the different coverage options will affect your monthly premium. If you are concerned about the costs, then your insurance company will be able to help you understand the numbers.

What to Expect for Exclusions?

Depending on the insurance company that you get, their policies will be different from one another. However, one similarity is the fact that there will be exclusions on their all-risk policies. Some common excluded instances are: rodent and/or pest damage, earthquakes or any type of earth movement, anything nuclear, acts of terrorism, some types of water damage like a sewer backup or a flood, broken fragile items like vases, pollution, normal wear and tear, mechanical breakdowns, etc.


Hopefully, you will never have to make a claim with your home insurance policy. However, if you ever do, you want to make sure that you are properly prepared. If you have a proper coverage plan, then you will be able to expect the impact of any accident. All-risk coverage will cover everything except the exclusions, and you want to make sure what will be covered in the way that you expect if you opt to get this coverage. Be sure to ask your insurance company any questions you may have. Take your time, do good research, and you will be able to make the best decision possible for you and your family, as well as your financial situation.