What constitutes all risk coverage on a homeowner's insurance policy?

Answer 1

All Risk InsuranceAll Risk coverage is a generic term referring to dwelling and homeowners property coverage forms 3 and C., HO3 and DP3.

The All Risk Policy is considered the Cadillac Policy in the property coverage market. They typically offer the broadest coverage terms and will cost more than Basic or Extended coverage forms.

The All Risk Policy form is a modern insurance policy. It was designed as a premium coverage offering with a simplified contract approach to language and structure providing the broadest possible coverage to the insured in the simplest language. The Policy attempts to enhance many internal coverages and adds others without need of endorsement.

All Risk is a Broad Coverage Form and is named such because the policy is considered exclusive rather than inclusive in policy language and structure. A broad but defined range of perils are considered covered if not specifically excluded, assume coverage. The bulk of the language defines what is not covered.

In contrast, the cheaper Basic or Extended Coverage Forms 1 and 2 are inclusive in structure, A range of covered perils are specified else assume no coverage. The bulk of the language defines what is covered. This approach is somewhat opposite of the broader All Risk policy language.

Although they start with a different approach, due to regional regulations and form standardization, you will still find some common language, formats and definitions in all the form types.

AnswerAll risk coverage is any sudden and accidental occurrence that is not specifically excluded in the policy. EX: While cooking i accidentally dropped a hot pan taking it off the stove cracking a tile in my floor. Nowhere in my policy does it specifically exclude dropping something on my tile floor. However the burden of proof is on the homeowner NOT the insurance company.