When it comes to protecting your property—whether it’s your home, office, or business assets—choosing the right insurance coverage is crucial. One term you may have come across is All Risk Insurance. But what does it really mean, and is it worth it?
Let’s break it down.
What Exactly Is All Risk Insurance?
All Risk Insurance, sometimes called “open perils” insurance, offers broad protection for your assets. Unlike a “named perils” policy that only covers risks listed in the contract (like fire or theft), an All Risk policy covers everything—except what is specifically excluded.
So instead of asking “What am I covered for?”, you’re asking, “What’s not covered?”
- Common Exclusions May Include: Wear and tear
- Rust, corrosion, or gradual deterioration War or terrorism
- Mechanical or electrical breakdown
- Damage from insects, rodents, or mold
- Earthquake or landslide (unless you add them)
Basically, if something happens and it’s not listed as an exclusion, you’re likely covered.
Who Should Consider All Risk Insurance?
While All Risk Insurance may sound like a luxury, it’s a smart choice for anyone with valuable property or exposure to various types of risk. Here’s who benefits the most:
1. Business Owners
If you own an office, shop, warehouse, or factory, All Risk Insurance protects your premises, contents, and equipment—whether damage comes from a fire, an accident, or even an unknown source.
2. Contractors & Developers
Getting quotes from several insurance providers is essential to ensure you’re getting competitive rates. When comparing quotes:
- Make sure you’re comparing policies with similar coverage and limits to get an apples-to-apples comparison.
- Check the insurer’s reputation, claim settlement ratio, and customer reviews to gauge service quality.
- Ask about discounts available, such as bundling multiple policies or no-claim bonuses.
Remember, the cheapest policy may not always be the best. Focus on value and reliability over just price.
3. Homeowners
Your home is one of your biggest investments. All Risk policies can offer protection beyond typical fire insurance—like accidental damage, breakins, or burst pipes.
4. Art Collectors & High-Value Asset Holders
If you own valuable items like artwork, antiques, or collectibles, you’ll want the broadest coverage available—especially for risks you may not even think of.
Why It Matters
In a world full of uncertainties, All Risk Insurance provides a stronger safety net. While it may come with a slightly higher premium than basic plans, the coverage it provides can save you thousands in the event of an unexpected loss.
Think of it as protecting your investment—not just insuring it.
Want help finding the right All Risk Insurance for your home or business in Malaysia?
Let our team at Minaris Risk Management guide you to the best options for your needs.
Contact us today for a free consultation.
Conclusion
All Risk Insurance offers comprehensive coverage that can protect your valuable assets from a wide range of potential risks, making it an ideal choice for business owners, contractors, homeowners, and those with high-value possessions.
While it may come at a higher premium, the peace of mind and financial protection it provides can prove invaluable in the face of unexpected events. If you’re looking to safeguard your property, it’s worth considering this all-encompassing insurance option.
Contact Minaris Risk Management today for expert advice and find the best All Risk Insurance plan tailored to your needs.
KH Chew is the Founder and Risk Advisor of Minaris, with over 30 years of experience in the insurance industry. He holds a Diploma in Insurance from the Malaysian Insurance Institute (MII), which laid the foundation for his in-depth expertise in property, financial lines, and other general insurance products. He is widely recognized for developing tailored insurance schemes for professionals and businesses across Malaysia. KH is also a passionate advocate for risk management and regularly advises clients and trade associations on comprehensive coverage strategies.