All Risks

AAA

DEFINITION of 'All Risks'

A type of insurance coverage that can exclude only risks that have been specifically outlined in the contract. "All risks" means that any risk that the contract does not specifically omit is automatically covered. For example, if an all-risks homeowner's policy does not expressly exclude flood coverage, then the house will be covered in the event of flood damage.

INVESTOPEDIA EXPLAINS 'All Risks'

This type of policy is found only in the property-casualty market. All-risks insurance is obviously the most comprehensive type of coverage available. It is therefore priced proportionately higher than other types of policies, and the cost of this type of insurance should be measured against the probability of a claim.

RELATED TERMS
  1. Property

    1. Anything over which a person or business has legal title. ...
  2. Risk

    The chance that an investment's actual return will be different ...
  3. Insurance

    A contract (policy) in which an individual or entity receives ...
  4. Casualty Insurance

    A broad category of coverage against loss of property, damage ...
  5. Lloyd's Of London

    A British insurance market where members join hands as syndicates ...
  6. Reinsurer

    A company that provides financial protection to insurance companies. ...
Related Articles
  1. Deducting Disaster: Casualty And Theft ...
    Taxes

    Deducting Disaster: Casualty And Theft ...

  2. Preparing Your Finances From Natural ...
    Home & Auto

    Preparing Your Finances From Natural ...

  3. Using Economic Capital To Determine ...
    Personal Finance

    Using Economic Capital To Determine ...

  4. Choosing The Best Disability Insurance ...
    Options & Futures

    Choosing The Best Disability Insurance ...

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center