All Risk Property Insurance
About All Risk Property Insurance
Product Overview
Property insurance is based on classical insurance principles, while offering a vast array of approaches. Today, insurers design numerous programs pooling different risks; however, the front line is always given to fire and explosion risks. The standard policy covers the most common types of risks, whereas all-risk extended coverage provides protection against any events, except for those specifically excluded from coverage. As all-risk extended coverage offers protection against risks that are beyond the basic coverage.
Having this coverage, the client is insured against any type of events, except for exclusions specified in the policy. The list of exclusions is governed by the insurance rules and the policy. In some situations the list can be downsized or extended, depending on the type of the property, the needs and the budget of the insured.
Coverage is never provided for losses resulting from
- War and hostilities, civil wars or their consequences, civil commotion, strikes, lockouts, seizures, requisition, capture, property destruction or damage caused by the order of military or civil authorities, acts of terrorism
- Any nuclear damage
- Guilty intent or gross negligence of the Insured, beneficiary or their agents
- Spontaneous combustion, fermentation, putrefaction or any other natural properties of insured items
- Total or partial collapse of structures, if the collapse was not caused by the insured event
One of the most important tasks in All-Risk Property Insurance is proper estimation of the amount of coverage based on the replacement cost or book value. Replacement cost (insurance based on the «new for old» principle, i.e. the cost of the new comparable property) is a better solution in the event of loss. Book value (the value that factors in depreciation) is a better choice for new properties. In all other cases, book-value based insurance is associated with additional expenses as depreciation is covered by the owner.
Competent estimation of the amount of an unconditional deductible is of paramount importance in insurance.
When seeking insurance for a large-size property, the prospect client should always remember about importance of pre-insurance inspection (survey) performed by a competent risk engineer, without seeing it as a ploy invented by insurers in order to find out all the bottlenecks and increase insurance prices. The survey is essential for proper assessment of the risk level and for the further decision on optimum terms and conditions of insurance as well as on recommendations that will help the insured to minimize his/her exposure to loss.
Advantages of insurance with AIG
- A world leader in insurance, with 90 years of proven experience and customer service
- The best insurance company in claims settlement, the rating of 2009 (Euromoney magazine rating)
- 2011: AIG, JSC, was awarded the nationally recognized title «Insurance Company No. 1 on the Real Estate Market», Russia
- An experienced team of competent risk engineers
- Large and stable capacities with high levels of protection
- Scrupulous screening and selection of risks; a powerful support from the team of underwriters (experts in risk selection and analysis)