Insurance expert explains: All-risk policies offer extensive protection, but not fully comprehensive insurance - what to look out for #insurance #risk protection #financial expert

Insurance expert explains: All-risk policies offer extensive protection, but not fully comprehensive insurance - what to look out for #insurance #risk protection #financial expert

According to a report from www.capital.de,

The all-risk policy, also known as all-risk coverage, promises extensive insurance protection against unknown and unnamed risks. Compared to traditional insurance policies, it offers numerous advantages, but is also more expensive. In addition, policyholders must comply with certain contractual obligations that leave room for interpretation and can lead to conflicts.

According to our own report, the all-risk policy actually offers extended insurance coverage with numerous possible applications. In the private sector, this extended protection is common in residential building, motor vehicle and household contents insurance. In the commercial sector, they often supplement content, business interruption, transport and electronics protection. However, the annual fees for premium household contents variants are often high and can amount to more than 1,000 euros.

Another important point is that the all-risk policy must exclude certain risks in order to be economically viable for the insurers. This means that this insurance does not cover all risks and therefore does not actually offer complete protection. Some risks such as wear and tear, intent and sometimes even climate damage are often excluded. In addition, the contractual obligations of policyholders harbor the potential for conflict, as they are often formulated vaguely and broadly.

It is important to note that, despite the extended insurance coverage, consumers can exclude individual causes from the scope of coverage as part of risk exclusions. One such example is damage caused by flooding. This shows that all-risk insurance is an advice-intensive product where consumers need a detailed analysis before taking out the contract. Therefore, interested parties should always contact professional and independent insurance advisors.